Indian iPhone maker Wistron terminates contract with Apple
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iPhone maker Wistron has terminated its contract with Apple. About it informs Indian newspaper Economic Times.
Wistron was the first company in India to start making the iPhone. The company decided to terminate the contract due to the fact that it did not receive a profit. Wistron put up for sale the assembly plant in Kolar.
An executive at the company told the Economic Times that the company tried to negotiate higher margins with Apple in order to make a profit from production, but the corporation refused. Wistron “didn’t have the necessary leverage” over Apple, with larger players such as Foxconn and Pegatron doing the bulk of the technology. India produces only 7% of the total iPhone.
It became too expensive for the company to only carry out the final assembly of devices, since the components had to be purchased in other regions. Difficulties also arose with supply chains, including due to the COVID-19 pandemic.
In 2020, there was a riot at the Wistron plant as the company did not pay employees all of their wages. This resulted in $60 million in damages.
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