Tata: There are rising speculations over a deal that is being negotiated between Tata group and Apple Inc. supplier’s factory. The agreement could be sealed by August 2023 and if approved Tata will become the First Indian company to take over assembly of Apple’s flagship product, the iPhone.
The Tata Group is seeking to takeover the Wistron Corp. factory in Karnataka which is valued around $600 million and the negotiations have been in place for over a year. The factory is mainly used for production of iPhone 14 model and employs over 10,000 people.
Challenges
The company has faced challenges till now in running a completely profitable business in India under the terms of Apple. Wistron is supposed to ship $1.8 billion dollar worth of iPhones till March 2024 and Tata has assured it will honor the commitment. The company will also triple the size of its workforce which would also be completed by India. The acquisition will mark the end of journey for Taiwanese company in India.
New opportunities
The Indian government has been making incentives for advanced technological companies to set up their manufacturing base in the country. Apple for its part has been looking to diversify its manufacturing and move production away from China. The manufacturing of iPhones is India would also motivate other companies to shift their manufacturing base to India and decrease dependency on China. The most likely scenario for iPhone 15 manufacturing in India could be assemblng of mini versions of iPhone device.
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