Unfair terms: One of the long-standing iPhone manufacturers has ended its cooperation with Apple

26. 05. 2023 | Kristýna Bezděková

Wistron’s edge is ringing. It has failed to reach an agreement with Apple and will no longer manufacture phone models for the tech giant in India. What was the reason for the termination of the collaboration?

Apple has been trying to get its electronics production to move away from China for some time now. India is set to become the new factory for iPhones, and while estimates speak of half of all models being assembled there by 2027, one of the main manufacturers is leaving. The Economic Times explains who it is. We are talking about Wistron, which was one of the pioneers in assembling iPhones in India. It came here in 2008 and nine years later got its first contract for the iPhone SE. Since then, production has grown.

Although iPhone production in India would increase, Wistron decided not to continue filling orders. This is mainly because the terms set by Apple did not allow Wistron to make any profit. Other reasons are said to be a poor work ethic, undervaluation of work done or unpaid overtime. Wistron is currently selling its factories and moving away to other countries and markets. This is unlikely to be a bad thing for Apple, however, as two other companies, Pegatron and Foxconn, which have operations in India, will continue to produce.

Wistron, one of the main manufacturers for Apple in India, has terminated its collaboration with the tech giant, signaling a significant change in Apple’s manufacturing strategy. As Apple seeks to diversify its production away from China, India has emerged as a key destination for iPhone assembly. However, despite the potential for increased iPhone production in India, Wistron has decided not to continue fulfilling orders. The main reason cited for this decision is the inability to generate profits under the terms set by Apple. Other factors contributing to the termination include issues related to work ethics, undervaluation of work, and unpaid overtime. As Wistron sells its factories and shifts its focus to other countries and markets, Apple will rely on the continued production from companies like Pegatron and Foxconn, which have operations in India.


Source, photo: economictimes.com

Author of this article

Kristýna Bezděková

Kristýna is a student of marketing and communication in an undergraduate program. She writes and translates content into the Czech language


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