![\"\"](\"\/\/www.iser-br.com\/Themes\/Release\/images\/responsive\/ettelecom-default.jpg\")
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
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新德里消息:纬创资通包装袋子。该公司在销售的过程中iPhoneKolar组装单元:,班加罗尔附近塔塔集团,目前持有试验在印度组装iPhone即将15模型。
这个离职之际,苹果其他合同制造商富士康和和硕联合在印度的两倍。
纬创资通是第一个苹果的三个全球合同制造商开始组装iphone于2017年在印度。但是它不能深入苹果供应链的工作——组件制造业和其他库存控股股东台湾合同制造商的一个关键原因是退出印度,世界第二大智能手机市场。
然后是应对的挑战当地工作culture-something以前爆发。Kolar暴力爆发在新开的:单位在2020年12月工人抗议据称拖欠工资和艰巨的小时。这一事件赔偿公司损失大约430卢比。苹果把纬创资通缓刑,停止单位直到采取了纠正措施。2021年2月它恢复工作。
上周,400名高级生产管理员工抗议,要求平等与初级合同工人,工资等报道。操作都是正常的。
而交易尚未关闭,塔塔高管已经占据了关键职位。
员工和业内高管告诉ET,纬创资通已经考虑退出,因为它没有看到长期盈利能力只有汇编程序的最终产品。它宁愿赌其核心制造企业在越南和墨西哥等国。
iPhone的公司已经停止组装在中国销售其昆山单位Luxshare早在2020年,印度业务成为它关注太少。
同时,“纬创资通未能从苹果公司的业务在印度赚钱。它试图与苹果谈判获得更高的利润,但作为一个较小的球员比富士康和全球和硕联合,它没有必要的杠杆,”一名高管表示。
富士康为苹果,和硕联合从事库存管理在印度,但纬创资通无法进入高利润业务。“需要有系统来衡量各单位需求和船,纬创资通缺乏。另外,它是一个小得多的球员相比,富士康、和硕联合”一名的高管表示。
做最后的组装时组件必须获得来自多个区域变得很困难,尤其是在大流行。
苹果的供应链,CEO蒂姆•库克被认为已经到位,有三层。第一层包括零部件供应商,使部分如相机传感器、显示和电池以及振动马达、传感器和扬声器,进入iPhone。
第二层的工作由其他库存球员那种,存储和运输组件最终装配工。库存管理,允许苹果保持准时制生产模式,通常是由最终的装配工合同制造商富士康、和硕联合等。第三层包括最终产品组装的合同制造商。
全球的合同制造的关键是库存仓库,可以接近100%的利润率,Mark Zetter说在美国企业外包管理顾问,提供咨询服务。这使得大合同制造商抵消低利润空间在组装业务。
回应等问题苹果供应链,Zetter说“如果你在一个或所有三层提供从设计到制造到运输分布甚至逆向物流,你会招致更多的投入成本,但你也要更多的收入,”
“但与此同时,你的利润会在慢和软市场,和合同制造商的问题是很多人都依赖于定期的再融资。但是现在,信贷市场也开始冻结,和资本成本越来越高,因此,除非他们有足够的收入来抵消操作输入,他们会挣扎。”
纬创资通的业内高管表示,过早开始在印度看到利润后根据激励下的投资大约1000卢比(PLI)计划。该公司看到超过200卢比营业额iPhone生产FY23有大约600卢比,从政府激励。
苹果公司拒绝置评。
纬创资通在2008年进入印度的维修设施维修电脑,笔记本电脑,服务器和其他设备它制造的。在2017年,它开始为苹果iPhone现在让iPhone 14日iPhone iPhone 13日12和iPhone。该公司将继续其维修设施。
当地的纬创资通的员工说,在匿名的情况下,该公司一直有问题Kolar留住工人:设施。
“有很多管理问题。中国和印度以不同的方式工作,他们不明白。印度劳工的心态是不同的,但是他们不留意,导致磨损率高,”其中一个说。
另一个补充说:“我们看到中国和台湾的员工来自不同的供应商来这里工作,昼夜不停地工作。他们没有社交生活。但这里的印度工人想要平衡。他们想出去工作后,在节日休假,但他们通常是不允许的。”
纬创资通主管回应等的详细问卷调查说,“…纬创资通不授权员工操作国定假日。”
上面列举的业内高管之一,并指出,那些在官方假日工作得到补偿。
的一些问题将是一个挑战,塔塔集团。找到替代的中层和更高的排名为纬创资通是困难的,特别是由于工厂的距离班加罗尔。
上面列举的高管之一说,大约20个高级管理层成员离开塔塔收购以来。
Kolar”:植物40公里远离城市,没有员工的季度驻留,”一位员工说。“我们大多数人生活在城市,必须通过交通导航到清晨。这就是为什么高级职位很难填补。”
高管表示,并没有太多的空间可伸缩性在纬创资通的苹果公司在印度的业务。更有意义的公司专注于其核心业务,这是硬件制造。
按照与台湾证交所的监管备案文件,一个新的214000平方英尺的工厂在越南完成阶段公司将个人电脑,笔记本电脑,笔记本电脑,服务器和其他硬件。
“它不具有商业意义制造公司在越南和印度,鉴于两国自由贸易协议,”一名的高管表示。公司在越南,宁愿让接近中国的供应链,不引起额外关税和运输产品到印度,这位人士说。
纬创资通在印度将继续维修业务从一个单位Peenya,班加罗尔。维修业务自2008年以来持续的和是一个盈利的公司。
<\/span><\/figcaption><\/figure>New Delhi: Wistron<\/a> is packing its bags. The company is in the process of selling its iPhone<\/a> assembly unit in Kolar, near Bengaluru, to the Tata Group<\/a>, which is currently holding trials for assembling upcoming iPhone 15 models in India.
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-authors="[" subhrojit mallick"]" data-category-name="Devices" data-category_id="12" data-date="2023-05-22" data-index="article_1">
新德里消息:纬创资通包装袋子。该公司在销售的过程中iPhoneKolar组装单元:,班加罗尔附近塔塔集团,目前持有试验在印度组装iPhone即将15模型。
这个离职之际,苹果其他合同制造商富士康和和硕联合在印度的两倍。
纬创资通是第一个苹果的三个全球合同制造商开始组装iphone于2017年在印度。但是它不能深入苹果供应链的工作——组件制造业和其他库存控股股东台湾合同制造商的一个关键原因是退出印度,世界第二大智能手机市场。
然后是应对的挑战当地工作culture-something以前爆发。Kolar暴力爆发在新开的:单位在2020年12月工人抗议据称拖欠工资和艰巨的小时。这一事件赔偿公司损失大约430卢比。苹果把纬创资通缓刑,停止单位直到采取了纠正措施。2021年2月它恢复工作。
上周,400名高级生产管理员工抗议,要求平等与初级合同工人,工资等报道。操作都是正常的。
而交易尚未关闭,塔塔高管已经占据了关键职位。
员工和业内高管告诉ET,纬创资通已经考虑退出,因为它没有看到长期盈利能力只有汇编程序的最终产品。它宁愿赌其核心制造企业在越南和墨西哥等国。
iPhone的公司已经停止组装在中国销售其昆山单位Luxshare早在2020年,印度业务成为它关注太少。
同时,“纬创资通未能从苹果公司的业务在印度赚钱。它试图与苹果谈判获得更高的利润,但作为一个较小的球员比富士康和全球和硕联合,它没有必要的杠杆,”一名高管表示。
富士康为苹果,和硕联合从事库存管理在印度,但纬创资通无法进入高利润业务。“需要有系统来衡量各单位需求和船,纬创资通缺乏。另外,它是一个小得多的球员相比,富士康、和硕联合”一名的高管表示。
做最后的组装时组件必须获得来自多个区域变得很困难,尤其是在大流行。
苹果的供应链,CEO蒂姆•库克被认为已经到位,有三层。第一层包括零部件供应商,使部分如相机传感器、显示和电池以及振动马达、传感器和扬声器,进入iPhone。
第二层的工作由其他库存球员那种,存储和运输组件最终装配工。库存管理,允许苹果保持准时制生产模式,通常是由最终的装配工合同制造商富士康、和硕联合等。第三层包括最终产品组装的合同制造商。
全球的合同制造的关键是库存仓库,可以接近100%的利润率,Mark Zetter说在美国企业外包管理顾问,提供咨询服务。这使得大合同制造商抵消低利润空间在组装业务。
回应等问题苹果供应链,Zetter说“如果你在一个或所有三层提供从设计到制造到运输分布甚至逆向物流,你会招致更多的投入成本,但你也要更多的收入,”
“但与此同时,你的利润会在慢和软市场,和合同制造商的问题是很多人都依赖于定期的再融资。但是现在,信贷市场也开始冻结,和资本成本越来越高,因此,除非他们有足够的收入来抵消操作输入,他们会挣扎。”
纬创资通的业内高管表示,过早开始在印度看到利润后根据激励下的投资大约1000卢比(PLI)计划。该公司看到超过200卢比营业额iPhone生产FY23有大约600卢比,从政府激励。
苹果公司拒绝置评。
纬创资通在2008年进入印度的维修设施维修电脑,笔记本电脑,服务器和其他设备它制造的。在2017年,它开始为苹果iPhone现在让iPhone 14日iPhone iPhone 13日12和iPhone。该公司将继续其维修设施。
当地的纬创资通的员工说,在匿名的情况下,该公司一直有问题Kolar留住工人:设施。
“有很多管理问题。中国和印度以不同的方式工作,他们不明白。印度劳工的心态是不同的,但是他们不留意,导致磨损率高,”其中一个说。
另一个补充说:“我们看到中国和台湾的员工来自不同的供应商来这里工作,昼夜不停地工作。他们没有社交生活。但这里的印度工人想要平衡。他们想出去工作后,在节日休假,但他们通常是不允许的。”
纬创资通主管回应等的详细问卷调查说,“…纬创资通不授权员工操作国定假日。”
上面列举的业内高管之一,并指出,那些在官方假日工作得到补偿。
的一些问题将是一个挑战,塔塔集团。找到替代的中层和更高的排名为纬创资通是困难的,特别是由于工厂的距离班加罗尔。
上面列举的高管之一说,大约20个高级管理层成员离开塔塔收购以来。
Kolar”:植物40公里远离城市,没有员工的季度驻留,”一位员工说。“我们大多数人生活在城市,必须通过交通导航到清晨。这就是为什么高级职位很难填补。”
高管表示,并没有太多的空间可伸缩性在纬创资通的苹果公司在印度的业务。更有意义的公司专注于其核心业务,这是硬件制造。
按照与台湾证交所的监管备案文件,一个新的214000平方英尺的工厂在越南完成阶段公司将个人电脑,笔记本电脑,笔记本电脑,服务器和其他硬件。
“它不具有商业意义制造公司在越南和印度,鉴于两国自由贸易协议,”一名的高管表示。公司在越南,宁愿让接近中国的供应链,不引起额外关税和运输产品到印度,这位人士说。
纬创资通在印度将继续维修业务从一个单位Peenya,班加罗尔。维修业务自2008年以来持续的和是一个盈利的公司。
<\/span><\/figcaption><\/figure>New Delhi: Wistron<\/a> is packing its bags. The company is in the process of selling its iPhone<\/a> assembly unit in Kolar, near Bengaluru, to the Tata Group<\/a>, which is currently holding trials for assembling upcoming iPhone 15 models in India.
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-authors="[" subhrojit mallick"]" data-category-name="Devices" data-category_id="12" data-date="2023-05-22" data-index="article_1">
新德里消息:纬创资通包装袋子。该公司在销售的过程中iPhoneKolar组装单元:,班加罗尔附近塔塔集团,目前持有试验在印度组装iPhone即将15模型。
这个离职之际,苹果其他合同制造商富士康和和硕联合在印度的两倍。
纬创资通是第一个苹果的三个全球合同制造商开始组装iphone于2017年在印度。但是它不能深入苹果供应链的工作——组件制造业和其他库存控股股东台湾合同制造商的一个关键原因是退出印度,世界第二大智能手机市场。
然后是应对的挑战当地工作culture-something以前爆发。Kolar暴力爆发在新开的:单位在2020年12月工人抗议据称拖欠工资和艰巨的小时。这一事件赔偿公司损失大约430卢比。苹果把纬创资通缓刑,停止单位直到采取了纠正措施。2021年2月它恢复工作。
上周,400名高级生产管理员工抗议,要求平等与初级合同工人,工资等报道。操作都是正常的。
而交易尚未关闭,塔塔高管已经占据了关键职位。
员工和业内高管告诉ET,纬创资通已经考虑退出,因为它没有看到长期盈利能力只有汇编程序的最终产品。它宁愿赌其核心制造企业在越南和墨西哥等国。
iPhone的公司已经停止组装在中国销售其昆山单位Luxshare早在2020年,印度业务成为它关注太少。
同时,“纬创资通未能从苹果公司的业务在印度赚钱。它试图与苹果谈判获得更高的利润,但作为一个较小的球员比富士康和全球和硕联合,它没有必要的杠杆,”一名高管表示。
富士康为苹果,和硕联合从事库存管理在印度,但纬创资通无法进入高利润业务。“需要有系统来衡量各单位需求和船,纬创资通缺乏。另外,它是一个小得多的球员相比,富士康、和硕联合”一名的高管表示。
做最后的组装时组件必须获得来自多个区域变得很困难,尤其是在大流行。
苹果的供应链,CEO蒂姆•库克被认为已经到位,有三层。第一层包括零部件供应商,使部分如相机传感器、显示和电池以及振动马达、传感器和扬声器,进入iPhone。
第二层的工作由其他库存球员那种,存储和运输组件最终装配工。库存管理,允许苹果保持准时制生产模式,通常是由最终的装配工合同制造商富士康、和硕联合等。第三层包括最终产品组装的合同制造商。
全球的合同制造的关键是库存仓库,可以接近100%的利润率,Mark Zetter说在美国企业外包管理顾问,提供咨询服务。这使得大合同制造商抵消低利润空间在组装业务。
回应等问题苹果供应链,Zetter说“如果你在一个或所有三层提供从设计到制造到运输分布甚至逆向物流,你会招致更多的投入成本,但你也要更多的收入,”
“但与此同时,你的利润会在慢和软市场,和合同制造商的问题是很多人都依赖于定期的再融资。但是现在,信贷市场也开始冻结,和资本成本越来越高,因此,除非他们有足够的收入来抵消操作输入,他们会挣扎。”
纬创资通的业内高管表示,过早开始在印度看到利润后根据激励下的投资大约1000卢比(PLI)计划。该公司看到超过200卢比营业额iPhone生产FY23有大约600卢比,从政府激励。
苹果公司拒绝置评。
纬创资通在2008年进入印度的维修设施维修电脑,笔记本电脑,服务器和其他设备它制造的。在2017年,它开始为苹果iPhone现在让iPhone 14日iPhone iPhone 13日12和iPhone。该公司将继续其维修设施。
当地的纬创资通的员工说,在匿名的情况下,该公司一直有问题Kolar留住工人:设施。
“有很多管理问题。中国和印度以不同的方式工作,他们不明白。印度劳工的心态是不同的,但是他们不留意,导致磨损率高,”其中一个说。
另一个补充说:“我们看到中国和台湾的员工来自不同的供应商来这里工作,昼夜不停地工作。他们没有社交生活。但这里的印度工人想要平衡。他们想出去工作后,在节日休假,但他们通常是不允许的。”
纬创资通主管回应等的详细问卷调查说,“…纬创资通不授权员工操作国定假日。”
上面列举的业内高管之一,并指出,那些在官方假日工作得到补偿。
的一些问题将是一个挑战,塔塔集团。找到替代的中层和更高的排名为纬创资通是困难的,特别是由于工厂的距离班加罗尔。
上面列举的高管之一说,大约20个高级管理层成员离开塔塔收购以来。
Kolar”:植物40公里远离城市,没有员工的季度驻留,”一位员工说。“我们大多数人生活在城市,必须通过交通导航到清晨。这就是为什么高级职位很难填补。”
高管表示,并没有太多的空间可伸缩性在纬创资通的苹果公司在印度的业务。更有意义的公司专注于其核心业务,这是硬件制造。
按照与台湾证交所的监管备案文件,一个新的214000平方英尺的工厂在越南完成阶段公司将个人电脑,笔记本电脑,笔记本电脑,服务器和其他硬件。
“它不具有商业意义制造公司在越南和印度,鉴于两国自由贸易协议,”一名的高管表示。公司在越南,宁愿让接近中国的供应链,不引起额外关税和运输产品到印度,这位人士说。
纬创资通在印度将继续维修业务从一个单位Peenya,班加罗尔。维修业务自2008年以来持续的和是一个盈利的公司。
<\/span><\/figcaption><\/figure>New Delhi: Wistron<\/a> is packing its bags. The company is in the process of selling its iPhone<\/a> assembly unit in Kolar, near Bengaluru, to the Tata Group<\/a>, which is currently holding trials for assembling upcoming iPhone 15 models in India.
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-authors="[" subhrojit mallick"]" data-category-name="Devices" data-category_id="12" data-date="2023-05-22" data-index="article_1">
新德里消息:纬创资通包装袋子。该公司在销售的过程中iPhoneKolar组装单元:,班加罗尔附近塔塔集团,目前持有试验在印度组装iPhone即将15模型。
这个离职之际,苹果其他合同制造商富士康和和硕联合在印度的两倍。
纬创资通是第一个苹果的三个全球合同制造商开始组装iphone于2017年在印度。但是它不能深入苹果供应链的工作——组件制造业和其他库存控股股东台湾合同制造商的一个关键原因是退出印度,世界第二大智能手机市场。
然后是应对的挑战当地工作culture-something以前爆发。Kolar暴力爆发在新开的:单位在2020年12月工人抗议据称拖欠工资和艰巨的小时。这一事件赔偿公司损失大约430卢比。苹果把纬创资通缓刑,停止单位直到采取了纠正措施。2021年2月它恢复工作。
上周,400名高级生产管理员工抗议,要求平等与初级合同工人,工资等报道。操作都是正常的。
而交易尚未关闭,塔塔高管已经占据了关键职位。
员工和业内高管告诉ET,纬创资通已经考虑退出,因为它没有看到长期盈利能力只有汇编程序的最终产品。它宁愿赌其核心制造企业在越南和墨西哥等国。
iPhone的公司已经停止组装在中国销售其昆山单位Luxshare早在2020年,印度业务成为它关注太少。
同时,“纬创资通未能从苹果公司的业务在印度赚钱。它试图与苹果谈判获得更高的利润,但作为一个较小的球员比富士康和全球和硕联合,它没有必要的杠杆,”一名高管表示。
富士康为苹果,和硕联合从事库存管理在印度,但纬创资通无法进入高利润业务。“需要有系统来衡量各单位需求和船,纬创资通缺乏。另外,它是一个小得多的球员相比,富士康、和硕联合”一名的高管表示。
做最后的组装时组件必须获得来自多个区域变得很困难,尤其是在大流行。
苹果的供应链,CEO蒂姆•库克被认为已经到位,有三层。第一层包括零部件供应商,使部分如相机传感器、显示和电池以及振动马达、传感器和扬声器,进入iPhone。
第二层的工作由其他库存球员那种,存储和运输组件最终装配工。库存管理,允许苹果保持准时制生产模式,通常是由最终的装配工合同制造商富士康、和硕联合等。第三层包括最终产品组装的合同制造商。
全球的合同制造的关键是库存仓库,可以接近100%的利润率,Mark Zetter说在美国企业外包管理顾问,提供咨询服务。这使得大合同制造商抵消低利润空间在组装业务。
回应等问题苹果供应链,Zetter说“如果你在一个或所有三层提供从设计到制造到运输分布甚至逆向物流,你会招致更多的投入成本,但你也要更多的收入,”
“但与此同时,你的利润会在慢和软市场,和合同制造商的问题是很多人都依赖于定期的再融资。但是现在,信贷市场也开始冻结,和资本成本越来越高,因此,除非他们有足够的收入来抵消操作输入,他们会挣扎。”
纬创资通的业内高管表示,过早开始在印度看到利润后根据激励下的投资大约1000卢比(PLI)计划。该公司看到超过200卢比营业额iPhone生产FY23有大约600卢比,从政府激励。
苹果公司拒绝置评。
纬创资通在2008年进入印度的维修设施维修电脑,笔记本电脑,服务器和其他设备它制造的。在2017年,它开始为苹果iPhone现在让iPhone 14日iPhone iPhone 13日12和iPhone。该公司将继续其维修设施。
当地的纬创资通的员工说,在匿名的情况下,该公司一直有问题Kolar留住工人:设施。
“有很多管理问题。中国和印度以不同的方式工作,他们不明白。印度劳工的心态是不同的,但是他们不留意,导致磨损率高,”其中一个说。
另一个补充说:“我们看到中国和台湾的员工来自不同的供应商来这里工作,昼夜不停地工作。他们没有社交生活。但这里的印度工人想要平衡。他们想出去工作后,在节日休假,但他们通常是不允许的。”
纬创资通主管回应等的详细问卷调查说,“…纬创资通不授权员工操作国定假日。”
上面列举的业内高管之一,并指出,那些在官方假日工作得到补偿。
的一些问题将是一个挑战,塔塔集团。找到替代的中层和更高的排名为纬创资通是困难的,特别是由于工厂的距离班加罗尔。
上面列举的高管之一说,大约20个高级管理层成员离开塔塔收购以来。
Kolar”:植物40公里远离城市,没有员工的季度驻留,”一位员工说。“我们大多数人生活在城市,必须通过交通导航到清晨。这就是为什么高级职位很难填补。”
高管表示,并没有太多的空间可伸缩性在纬创资通的苹果公司在印度的业务。更有意义的公司专注于其核心业务,这是硬件制造。
按照与台湾证交所的监管备案文件,一个新的214000平方英尺的工厂在越南完成阶段公司将个人电脑,笔记本电脑,笔记本电脑,服务器和其他硬件。
“它不具有商业意义制造公司在越南和印度,鉴于两国自由贸易协议,”一名的高管表示。公司在越南,宁愿让接近中国的供应链,不引起额外关税和运输产品到印度,这位人士说。
纬创资通在印度将继续维修业务从一个单位Peenya,班加罗尔。维修业务自2008年以来持续的和是一个盈利的公司。
<\/span><\/figcaption><\/figure>New Delhi: Wistron<\/a> is packing its bags. The company is in the process of selling its iPhone<\/a> assembly unit in Kolar, near Bengaluru, to the Tata Group<\/a>, which is currently holding trials for assembling upcoming iPhone 15 models in India.
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-authors="[" subhrojit mallick"]" data-category-name="Devices" data-category_id="12" data-date="2023-05-22" data-index="article_1">
新德里消息:纬创资通包装袋子。该公司在销售的过程中iPhoneKolar组装单元:,班加罗尔附近塔塔集团,目前持有试验在印度组装iPhone即将15模型。
这个离职之际,苹果其他合同制造商富士康和和硕联合在印度的两倍。
纬创资通是第一个苹果的三个全球合同制造商开始组装iphone于2017年在印度。但是它不能深入苹果供应链的工作——组件制造业和其他库存控股股东台湾合同制造商的一个关键原因是退出印度,世界第二大智能手机市场。
然后是应对的挑战当地工作culture-something以前爆发。Kolar暴力爆发在新开的:单位在2020年12月工人抗议据称拖欠工资和艰巨的小时。这一事件赔偿公司损失大约430卢比。苹果把纬创资通缓刑,停止单位直到采取了纠正措施。2021年2月它恢复工作。
上周,400名高级生产管理员工抗议,要求平等与初级合同工人,工资等报道。操作都是正常的。
而交易尚未关闭,塔塔高管已经占据了关键职位。
员工和业内高管告诉ET,纬创资通已经考虑退出,因为它没有看到长期盈利能力只有汇编程序的最终产品。它宁愿赌其核心制造企业在越南和墨西哥等国。
iPhone的公司已经停止组装在中国销售其昆山单位Luxshare早在2020年,印度业务成为它关注太少。
同时,“纬创资通未能从苹果公司的业务在印度赚钱。它试图与苹果谈判获得更高的利润,但作为一个较小的球员比富士康和全球和硕联合,它没有必要的杠杆,”一名高管表示。
富士康为苹果,和硕联合从事库存管理在印度,但纬创资通无法进入高利润业务。“需要有系统来衡量各单位需求和船,纬创资通缺乏。另外,它是一个小得多的球员相比,富士康、和硕联合”一名的高管表示。
做最后的组装时组件必须获得来自多个区域变得很困难,尤其是在大流行。
苹果的供应链,CEO蒂姆•库克被认为已经到位,有三层。第一层包括零部件供应商,使部分如相机传感器、显示和电池以及振动马达、传感器和扬声器,进入iPhone。
第二层的工作由其他库存球员那种,存储和运输组件最终装配工。库存管理,允许苹果保持准时制生产模式,通常是由最终的装配工合同制造商富士康、和硕联合等。第三层包括最终产品组装的合同制造商。
全球的合同制造的关键是库存仓库,可以接近100%的利润率,Mark Zetter说在美国企业外包管理顾问,提供咨询服务。这使得大合同制造商抵消低利润空间在组装业务。
回应等问题苹果供应链,Zetter说“如果你在一个或所有三层提供从设计到制造到运输分布甚至逆向物流,你会招致更多的投入成本,但你也要更多的收入,”
“但与此同时,你的利润会在慢和软市场,和合同制造商的问题是很多人都依赖于定期的再融资。但是现在,信贷市场也开始冻结,和资本成本越来越高,因此,除非他们有足够的收入来抵消操作输入,他们会挣扎。”
纬创资通的业内高管表示,过早开始在印度看到利润后根据激励下的投资大约1000卢比(PLI)计划。该公司看到超过200卢比营业额iPhone生产FY23有大约600卢比,从政府激励。
苹果公司拒绝置评。
纬创资通在2008年进入印度的维修设施维修电脑,笔记本电脑,服务器和其他设备它制造的。在2017年,它开始为苹果iPhone现在让iPhone 14日iPhone iPhone 13日12和iPhone。该公司将继续其维修设施。
当地的纬创资通的员工说,在匿名的情况下,该公司一直有问题Kolar留住工人:设施。
“有很多管理问题。中国和印度以不同的方式工作,他们不明白。印度劳工的心态是不同的,但是他们不留意,导致磨损率高,”其中一个说。
另一个补充说:“我们看到中国和台湾的员工来自不同的供应商来这里工作,昼夜不停地工作。他们没有社交生活。但这里的印度工人想要平衡。他们想出去工作后,在节日休假,但他们通常是不允许的。”
纬创资通主管回应等的详细问卷调查说,“…纬创资通不授权员工操作国定假日。”
上面列举的业内高管之一,并指出,那些在官方假日工作得到补偿。
的一些问题将是一个挑战,塔塔集团。找到替代的中层和更高的排名为纬创资通是困难的,特别是由于工厂的距离班加罗尔。
上面列举的高管之一说,大约20个高级管理层成员离开塔塔收购以来。
Kolar”:植物40公里远离城市,没有员工的季度驻留,”一位员工说。“我们大多数人生活在城市,必须通过交通导航到清晨。这就是为什么高级职位很难填补。”
高管表示,并没有太多的空间可伸缩性在纬创资通的苹果公司在印度的业务。更有意义的公司专注于其核心业务,这是硬件制造。
按照与台湾证交所的监管备案文件,一个新的214000平方英尺的工厂在越南完成阶段公司将个人电脑,笔记本电脑,笔记本电脑,服务器和其他硬件。
“它不具有商业意义制造公司在越南和印度,鉴于两国自由贸易协议,”一名的高管表示。公司在越南,宁愿让接近中国的供应链,不引起额外关税和运输产品到印度,这位人士说。
纬创资通在印度将继续维修业务从一个单位Peenya,班加罗尔。维修业务自2008年以来持续的和是一个盈利的公司。
<\/span><\/figcaption><\/figure>New Delhi: Wistron<\/a> is packing its bags. The company is in the process of selling its iPhone<\/a> assembly unit in Kolar, near Bengaluru, to the Tata Group<\/a>, which is currently holding trials for assembling upcoming iPhone 15 models in India.
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
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读到
这个离职之际,苹果其他合同制造商富士康和和硕联合在印度的两倍。
纬创资通是第一个苹果的三个全球合同制造商开始组装iphone于2017年在印度。但是它不能深入苹果供应链的工作——组件制造业和其他库存控股股东台湾合同制造商的一个关键原因是退出印度,世界第二大智能手机市场。
然后是应对的挑战当地工作culture-something以前爆发。Kolar暴力爆发在新开的:单位在2020年12月工人抗议据称拖欠工资和艰巨的小时。这一事件赔偿公司损失大约430卢比。苹果把纬创资通缓刑,停止单位直到采取了纠正措施。2021年2月它恢复工作。
上周,400名高级生产管理员工抗议,要求平等与初级合同工人,工资等报道。操作都是正常的。
而交易尚未关闭,塔塔高管已经占据了关键职位。
员工和业内高管告诉ET,纬创资通已经考虑退出,因为它没有看到长期盈利能力只有汇编程序的最终产品。它宁愿赌其核心制造企业在越南和墨西哥等国。
iPhone的公司已经停止组装在中国销售其昆山单位Luxshare早在2020年,印度业务成为它关注太少。
同时,“纬创资通未能从苹果公司的业务在印度赚钱。它试图与苹果谈判获得更高的利润,但作为一个较小的球员比富士康和全球和硕联合,它没有必要的杠杆,”一名高管表示。
富士康为苹果,和硕联合从事库存管理在印度,但纬创资通无法进入高利润业务。“需要有系统来衡量各单位需求和船,纬创资通缺乏。另外,它是一个小得多的球员相比,富士康、和硕联合”一名的高管表示。
做最后的组装时组件必须获得来自多个区域变得很困难,尤其是在大流行。
苹果的供应链,CEO蒂姆•库克被认为已经到位,有三层。第一层包括零部件供应商,使部分如相机传感器、显示和电池以及振动马达、传感器和扬声器,进入iPhone。
第二层的工作由其他库存球员那种,存储和运输组件最终装配工。库存管理,允许苹果保持准时制生产模式,通常是由最终的装配工合同制造商富士康、和硕联合等。第三层包括最终产品组装的合同制造商。
全球的合同制造的关键是库存仓库,可以接近100%的利润率,Mark Zetter说在美国企业外包管理顾问,提供咨询服务。这使得大合同制造商抵消低利润空间在组装业务。
回应等问题苹果供应链,Zetter说“如果你在一个或所有三层提供从设计到制造到运输分布甚至逆向物流,你会招致更多的投入成本,但你也要更多的收入,”
“但与此同时,你的利润会在慢和软市场,和合同制造商的问题是很多人都依赖于定期的再融资。但是现在,信贷市场也开始冻结,和资本成本越来越高,因此,除非他们有足够的收入来抵消操作输入,他们会挣扎。”
纬创资通的业内高管表示,过早开始在印度看到利润后根据激励下的投资大约1000卢比(PLI)计划。该公司看到超过200卢比营业额iPhone生产FY23有大约600卢比,从政府激励。
苹果公司拒绝置评。
纬创资通在2008年进入印度的维修设施维修电脑,笔记本电脑,服务器和其他设备它制造的。在2017年,它开始为苹果iPhone现在让iPhone 14日iPhone iPhone 13日12和iPhone。该公司将继续其维修设施。
当地的纬创资通的员工说,在匿名的情况下,该公司一直有问题Kolar留住工人:设施。
“有很多管理问题。中国和印度以不同的方式工作,他们不明白。印度劳工的心态是不同的,但是他们不留意,导致磨损率高,”其中一个说。
另一个补充说:“我们看到中国和台湾的员工来自不同的供应商来这里工作,昼夜不停地工作。他们没有社交生活。但这里的印度工人想要平衡。他们想出去工作后,在节日休假,但他们通常是不允许的。”
纬创资通主管回应等的详细问卷调查说,“…纬创资通不授权员工操作国定假日。”
上面列举的业内高管之一,并指出,那些在官方假日工作得到补偿。
的一些问题将是一个挑战,塔塔集团。找到替代的中层和更高的排名为纬创资通是困难的,特别是由于工厂的距离班加罗尔。
上面列举的高管之一说,大约20个高级管理层成员离开塔塔收购以来。
Kolar”:植物40公里远离城市,没有员工的季度驻留,”一位员工说。“我们大多数人生活在城市,必须通过交通导航到清晨。这就是为什么高级职位很难填补。”
高管表示,并没有太多的空间可伸缩性在纬创资通的苹果公司在印度的业务。更有意义的公司专注于其核心业务,这是硬件制造。
按照与台湾证交所的监管备案文件,一个新的214000平方英尺的工厂在越南完成阶段公司将个人电脑,笔记本电脑,笔记本电脑,服务器和其他硬件。
“它不具有商业意义制造公司在越南和印度,鉴于两国自由贸易协议,”一名的高管表示。公司在越南,宁愿让接近中国的供应链,不引起额外关税和运输产品到印度,这位人士说。
纬创资通在印度将继续维修业务从一个单位Peenya,班加罗尔。维修业务自2008年以来持续的和是一个盈利的公司。
This departure comes as Apple<\/a>’s other contract makers Foxconn<\/a> and Pegatron<\/a> double down on India.
Wistron was the first of Apple’s three global contract manufacturers to start assembling iPhones in India in 2017. But its inability to get deeper into Apple’s supply chain--component manufacturing and vendor-managed inventory holding—is one of the key reasons the Taiwanese contract manufacturer is exiting India, the world’s second largest smartphone market.
Then there was the challenge of coping with the local work culture—something that had erupted before. Violence broke out at the newly opened Kolar unit in December 2020 as workers protested against allegedly unpaid wages and arduous hours. That episode cost the company about Rs 430 crore in damages. Apple put Wistron on probation, halting the unit until corrective measures were taken. It resumed work in February 2021.
Last week, 400 senior production staff protested against the management, demanding parity in salaries with junior contractual workers, ET reported. Operations are normal now.
While the deal is yet to be closed, Tata executives are already taking up key positions.
Employees and industry executives told ET that Wistron had been contemplating an exit as it didn’t see long-term profitability in being a mere assembler of the final product. It would rather bet on its core IT manufacturing businesses in countries like Vietnam and Mexico.
With the company having stopped iPhone assembly in China after selling its Kunshan unit to Luxshare in 2020, the India business became too small for it to focus on.
Also, “Wistron has not been able to make any money from the Apple business in India. It has tried to negotiate with Apple for higher margins, but being a smaller player as compared to Foxconn and Pegatron globally, it did not have the necessary leverage,” said an executive.
Foxconn and Pegatron are engaged in inventory management for Apple in India, but Wistron wasn’t able to get into the high-margin business. “There need to be systems in place to gauge demand and ship to various units, which Wistron lacked. Plus, it is a much smaller player as compared to Foxconn and Pegatron,” said one of the executives.
Doing just the final assembly at a time when components had to be procured from multiple regions became difficult, especially during the pandemic.
The Apple supply chain, which CEO Tim Cook<\/a> is credited with having put in place, has three layers. The first layer includes component suppliers that make parts such as camera sensors, displays and batteries as well as vibration motors, sensors and speakers that go inside the iPhone.
The second layer consists of vendor-managed inventory players that sort, store and ship the components to final assemblers. Inventory management, which allows Apple to maintain a just-in-time production model, is often controlled by the final assemblers themselves such as contract manufacturers Foxconn and Pegatron. The third layer comprises the contract manufacturers which assemble the final product.
Key to contract manufacturing across the globe is inventory warehousing, where the profit margin can be close to 100%, said Mark Zetter, management consultant at US-based Venture Outsource, which provides consulting services. This allows big contract manufacturers room to offset the low margins in the assembly business.
Responding to ET's question about the Apple Supply Chain, Zetter said “If you are playing in one or all three layers of the supply chain—from design to manufacturing to shipping to distribution and even reverse logistics, you will be incurring more input costs, but you are also going to make more revenue,”
“But at the same time, your margins will get hit in slower and softer markets, and the issue with contract manufacturers is that a lot of them are dependent on regular refinancing. But now, credit markets are starting to freeze, and the cost of capital is getting higher, so unless they have enough revenues to offset the operating inputs, they will be struggling.”
An industry executive said it was too early for Wistron to start seeing profit in India after the roughly Rs 1,000 crore investment under the production-linked incentive (PLI) scheme. The company saw more than Rs 200 crore turnover in iPhone manufacturing<\/a> in FY23 and got about Rs 600 crore in incentives from the government.
Apple declined to comment.
Wistron entered India in 2008 with a repair facility servicing PCs, laptops, servers and other devices<\/a> it manufactured. In 2017, it started making iPhones for Apple and now makes the iPhone 14, iPhone 13, iPhone 12 and the iPhone SE. The company will continue with its repair facility.
Read also<\/h4><\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Apple, Samsung explore increasing electronics production in India<\/a><\/h5><\/div><\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Electronics exports get a $1 billion mobiles boost in April<\/a><\/h5><\/div><\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>Get ready for Tim Cook's riskiest move at Apple<\/a><\/h5><\/div><\/a><\/figure>Tatas get a bite of Apple, start manufacturing iPhone in Bengaluru<\/a><\/h5><\/div><\/div><\/div>
Local Wistron employees said, on condition of anonymity, that the company has been having problems retaining workers at the Kolar facility.
“There were a lot of management issues. China and India work in different ways, and they did not understand that. The mindset of Indian labourers are different, but they don’t pay any heed, leading to a high rate of attrition,” one of them said.
Another added: “We see the Chinese and Taiwanese employees from various vendors who come and work here, working round the clock. They don’t have a social life. But the Indian labourers here want to have that balance. They want to go out after work, take leave on festivals, but they are often not allowed.”
A Wistron executive in response to ET's detailed questionnaire said, \"…Wistron does not mandate its workers to operate on national holidays.\"
One of the industry executives cited above did point out that those who work on official holidays get a compensatory off.
Some of the issues will be a challenge for the Tata Group as well. Finding replacements in the mid-level and higher ranks was difficult for Wistron, particularly due to the plant’s distance from Bengaluru.
One of the executives cited above said about 20 senior management members have left since the Tata takeover began.
“The Kolar plant is 40 km away from the city and has no quarters for employees to reside,” an employee said. “Most of us live in the city and have to navigate through traffic to reach early in the morning. This is one reason why senior postings have been difficult to fill.”
Executives said there wasn’t much scope for scalability in Wistron’s Apple business in India. It makes more sense for the company to focus on its core business, which is IT hardware manufacturing.
As per regulatory filings with the Taiwan Stock Exchange, a new 214,000 sq ft factory is in the finishing stages in Vietnam where the company will be making PCs, notebooks, laptops, servers, and other IT hardware.
“It does not make business sense for a manufacturing company to be in both Vietnam and India, given that both countries have a free trade agreement,” said one of the executives. The company would rather make in Vietnam, which is closer to the Chinese supply chain, and ship products to India without incurring additional duties, the person said.
Wistron will continue its repair business in India from a unit in Peenya, Bengaluru. The repair business has been ongoing since 2008 and is a profitable one for the company.
<\/body>","next_sibling":[{"msid":100400570,"title":"China says US chipmaker Micron failed national security review","entity_type":"ARTICLE","link":"\/news\/devices\/china-says-us-chipmaker-micron-failed-national-security-review\/100400570","category_name":null,"category_name_seo":"devices"}],"related_content":[],"msid":100406127,"entity_type":"ARTICLE","title":"Wistron exits India Apple biz over scale, work culture","synopsis":"The contract maker\u2019s inability to get deeper into Apple\u2019s supply chain, sale of China factory and challenges posed by local employment norms spurred its decision to leave.","titleseo":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture","status":"ACTIVE","authors":[{"author_name":"Subhrojit Mallick","author_link":"\/author\/479244756\/subhrojit-mallick","author_image":"https:\/\/etimg.etb2bimg.com\/authorthumb\/479244756.cms?width=100&height=100","author_additional":{"thumbsize":true,"msid":479244756,"author_name":"Subhrojit Mallick","author_seo_name":"Subhrojit-Mallick","designation":"Correspondent","agency":false}}],"analytics":{"comments":0,"views":18837,"shares":0,"engagementtimems":27687000},"Alttitle":{"minfo":""},"artag":"ETTelecom","artdate":"2023-05-22 07:31:32","lastupd":"2023-05-23 12:47:06","breadcrumbTags":["apple","Wistron","iphone","tata group","devices","foxconn","pegatron","iphone manufacturing","Tim Cook","PLI scheme"],"secinfo":{"seolocation":"devices\/wistron-exits-india-apple-biz-over-scale-work-culture"}}" data-news_link="//www.iser-br.com/news/devices/wistron-exits-india-apple-biz-over-scale-work-culture/100406127">
<\/a><\/figure>
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