Tata Group is in talks to acquire a factory belonging to Apple Inc. Supplier. The deal is expected to take place before the end of August, this year. This will be the first acquisition where an Indian company will embark on the assembly of iPhones. According to anonymous sources, the Wistron Corporation factory in the Southern state of Karnataka is considered for this acquisition, with a more than $600 million value. The factory currently employs over 10,000 workers tasked with state-of-the-art iPhone 14 models. The deal has finally come to light after a year of negotiations. If the ac
As per the sources, Wistron is expected to ship iPhones valued at approximately $1.8 billion from the Karnataka factory by March 2024, to obtain financial incentives supported by the state government. Additionally, Wistron reportedly plans to triple the workforce at the plant within the same period. With Wistron’s exit, Tata Group is determined to fulfill the aforementioned commitments once the deal finalizes.
It will be evident whether this shift will lead to a decrease in iPhone prices in India. With the entry of Tata Group’s entry into the iPhone assembly business can impact the cost of iPhones in India positively due to reduced logistics and import expenses. However, Apple’s pricing strategy and demand-supply dynamics will play significant roles in deciding the cost of the iPhone. Henceforth, while the involvement of Tata Group in iPhone manufacturing may have significant cost benefits, its direct impact on iPhone pricing will be worthwhile to see.
Wistron started its first repair facility for multiple devices in India, in 2008. In 2017, the company began to manufacture iPhones for Apple. If reports are to be believed, Wistron faced several challenges in achieving profitability and that’s the reason they decided to sell iPhone assembling plants in India.