The Tata Group is poised to begin assembling Apple iPhones in India. This development follows the approval of the sale of Wistron’s Indian manufacturing unit to the multifaceted conglomerate renowned for its operations, ranging from salt to software. The announcement was made by a minister on Friday, indicating a new phase in India’s role in global electronics manufacturing.
Deputy Minister for Information Technology Rajeev Chandrasekhar announced via the social media platform X that a Tata company is lined up to commence the production of iPhones in India. This initiative isn’t limited to serving the domestic market but is also geared towards global distribution, reinforcing India’s position in Apple’s supply chain strategy.
The ownership transition came into the spotlight when the Wistron board consented to sell Wistron InfoComm Manufacturing India Private Limited to Tata Electronics Private Limited. The deal, valued at approximately $125 million, was confirmed through a statement from the Taiwan-based supplier that the minister shared. However, attempts to elicit comments from Wistron met with no immediate response.
India as a Key Player in Apple’s Expansion Strategy
Apple’s strategy has been gradually pivoting towards India, touting it as the next major hub for growth and seeking to diversify its production beyond China. This strategic shift began in 2017 with Apple initiating its iPhone assembly in the country via Wistron, subsequently bringing other major contractors like Foxconn and Pegatron into its Indian manufacturing fold.
However, the journey has not been without its setbacks. A significant incident occurred in December 2020 when the Wistron facility located in Narasapura in Karnataka state witnessed a shutdown that lasted three months. This closure was precipitated by worker-led protests, which involved property destruction over grievances related to unpaid wages, leading to losses amounting to millions of dollars. This new phase with the Tata Group is anticipated to navigate past such challenges, contributing positively to local employment and the global supply chain.
