At any point of the digital transition,…
The suspension of Wistron’s Indian factory production by Apple (AAPL.US) did not affect the localization of the iPhone 12 in India. Local Indian media announced that Foxconn’s iPhone 12 “Made in India” would be available at the earliest in two months. But the future prospects of the iPhone12 Mini’s low-cost version are not optimistic. The model is primarily produced in Karnataka, India, by Wistron’s factory. Due to pay arrears, the plant witnessed workers’ strikes.
Foxconn currently mostly manufactures mid-priced models in India, including iPhone 11 and XR models, while Wistron, including iPhone 7 and SE, produces comparatively low-end models.
Market analysis assumes that Wistron’s suspension of production would not impact the saleability of Indian iPhone models for the time being due to adequate inventory. However, as the whole consumer demand is moving to iPhone 12 models, the production suspension may lead to an increase in imports of iPhone from India. Research organization CyberMedia Research predicts that the suspension of production by Wistron could lead in January next year to a 30 percent increase in India’s iPhone imports.
Counterpoint Research data shows that, in the third quarter of this year, iPhone models will lead India in the high-end smartphone market (price super Rs 3000), the market is expected to exceed one million for the first time in the fourth quarter of iPhone sales in India.
Wages in arrears were hit and burned at Wistron’s Indian factory,
On the 12th local time, a large-scale incident of smashing, looting and burning occurred in the iPhone manufacturing facility opened by Taiwanese technology company Wistron due to wage arrears. The abuse affected most of the 2,000 workers on staff at the plant.
The scene is a mess, according to a video posted online and recorded by Indian TV station that crowds of employees hurled bricks, shattered factory windows, overturned and burnt vehicles, assaulted and damaged executive office equipment. Labor activists say that with salaries and working hours, Indian employees are frustrated.
Local Indian media reported that a pay cut had recently been experienced by some workers in the factory. When they were on duty at night, the workers began discussing the matter, and in the morning the discussion became heated. Any employees claimed that just a quarter of their salaries were earned by them. Some workers said they earned a salary of just 500 rupees (about 44 yuan). On Saturday, the workers met with the Department of Human Resources and demanded the payment of salaries that had been in arrears for many months. Since then, the executive office has been targeted by several workers, wrecking the office furniture and furniture.
Wistron officially apologised after the incident, saying that the company’s investigation concluded that the complaints from the employees were legitimate. The corporation removed the vice president in charge of the Indian market to address these issues, launched an online complaint hotline, and developed other outlets for workers to share their complaints.
Apple has since come out following the incident. The company argues that the findings of preliminary investigations indicate that Wistron has not established adequate protocols for handling working hours and breached the Supplier Code of Ethics of Apple. Wistron was introduced by Apple to the watch list. Unless the disciplinary steps are done, Wistron will not accept any new business instructions from Apple.