Taiwan-based Apple contract manufacturer Wistron Corp on Friday approved the sale of its plant in Karnataka to Tata group. This paves the way for the salt-to-software conglomerate to become the first domestic entity to manufacture iPhones.
“The transaction price is tentatively estimated at $125 million,” Wistron said in a statement. The company’s board reportedly met on Friday to grant approval to subsidiaries, SMS InfoComm (Singapore) and Wistron Hong Kong, to sign an agreement with Tata Electronics for the sale of its 100% indirect stake in Wistron InfoComm Manufacturing.
Electronics and Technology Minister Rajeev Chandrasekhar announced that Tata Group will start making Apple iPhones in India for domestic and global markets within two and a half years. The development underscores India’s growing production prowess and reflects a significant departure from Apple’s previous strategy of selling mostly Chinese-made new devices to frenzied customers across the world.
According to MoS Chandrasekhar, the telecom ministry fully backs the growth of global Indian electronics companies that will, in turn, support global electronic brands that want to make India their trusted manufacturing and talent partner.
As per available sources, globally, Wistron will continue as a contract manufacturer for iPhones, and will continue to handle repair services in India.
The Wistron factory currently assembles the iPhone 14, and its commitment to ship at least $1.8 billion worth of iPhones from the factory in the current financial year will now be taken over by Tata Group.
According to industry estimates, Apple’s sales from India rose nearly 45% to $6 billion in FY23, hitting a record high. The company’s exports from India are estimated to have crossed over $5 billion.
The current association is expected to help Apple to move its manufacturing ecosystem from China, which will eventually lead to a larger relocation of Apple’s manufacturing base to India.
