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Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

author:Fun Tech Show

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Apple has increased its layout in the Indian market, putting more and more iPhone production capacity in India, in order to expand the Indian market layout, Apple has even opened two official retail stores in India. Apple CEO Cook personally attended the scene and met with Indian Prime Minister Modi, all of which showed the importance of the Indian market.

However, making mobile phones in India requires the cooperation and support of foundries, and now Apple's "Indian factory" is fully withdrawing and abandoning the iPhone business in India, Cook must accept reality.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

The Indian market is very attractive to Apple, and the rapid growth of the Indian population can provide Apple with young and cheap labor. Although Apple's market share in India is relatively small, Apple's prospects in this market remain very positive as the Indian economy grows and local consumer demand for high-end products increases.

India is also promoting manufacturing and digital transformation, which also provides more opportunities for Apple to develop in the Indian market. So as early as 2017, Apple began to produce iPhone SE phones in India.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

Today, Apple will also produce high-end iPhones in India, and even the basic version of iPhone 15 will be released by India. At the same time that Apple is looking forward to the future of the Indian market, Apple's "Indian factory" has completely withdrawn and abandoned its iPhone OEM business in India.

This Indian factory is Wistron, Wistron is Apple's earliest iPhone foundry in India, Foxconn, Pegatron has taken root in India before entering the Indian market.

Apple Manufacturing in India can develop to this day, Wistron has contributed a lot. But Wistron has not ended well in India, and the company has announced a complete withdrawal from the Indian market and will dissolve all its operations in India in one year.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

The remaining factory facilities, related assets were acquired by India's Tata Group, which later took over as Apple's first local iPhone foundry. Wistron not only withdrew from the Indian market, but also terminated Apple's iPhone OEM cooperation.

Wistron suddenly withdrew from India and terminated the iPhone foundry, why did Wistron come to this point?

The factors involved are complex and not caused by a single problem. On the one hand, the Indian market is unstable, and there are frequent workers' disturbances, various censorship by relevant departments in India, and other issues. On the other hand, Wistron is not very profitable for Apple's foundry iPhone, cannot make money, and has been in a loss state for a long time.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

Continuing to stick to it will only bring down the company, so Wistron chose to withdraw completely and not play with Apple. Cook had to accept reality, and Wistron's exit reflected the deep waters of the Indian market.

Don't look at India's introduction of many policies and measures to support manufacturing, maintaining a welcoming attitude towards Apple, but Xiaomi, Google, Amazon and other companies have suffered big losses in the Indian market.

Assets are either frozen by India or fined by India for a variety of reasons. Apple still has a lot of cooperation value for India, so it can be safe with each other, and after India becomes bigger and stronger in the future, it is difficult to ensure that India will not make a move on Apple, and Apple's layout in the Indian market may be reshuffled at that time.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

Many people ridicule "India makes money Indian flowers, one wants to take home" is not without reason, many foreign companies can not stand the business environment of the Indian market has withdrawn from the Indian market, Wistron is one of them.

Wistron is gone, Foxconn, Pegatron, these Apple foundries that are investing in the Indian market may not end up better.

Of course, no one can say for sure what will happen in the future, maybe India will always open a back door for Apple, so that Apple can smoothly put more iPhones in India to make and solve the problem of employment of India's population. But again, after the company becomes bigger and stronger in India, it is easy to be targeted by India.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

If the iPhone foundries leave India, it will be useless for Apple to make great efforts in India. Even if the foundry is stabilized, it will face other challenges, such as the relatively low quality and productivity of India's workers, which need to be trained and improved. India's infrastructure needs to be improved, including power supply, logistics, etc., which may affect the production efficiency and product quality of factories.

These challenges will lead to a huge amount of time and effort for Apple, and it will take 5, 10 or even more years in the future to build India into another production base.

Suddenly, Apple's "India factory" was fully withdrawn, and Cook had to accept reality

Some people worry that Apple's transfer of production to India will cause China's manufacturing economy to lose, so how to deal with it? Perhaps it can improve its own technological level and strengthen its innovation ability to cope with this competition. China's manufacturing industry can also maintain its competitive advantage by expanding into other markets, reducing production costs, improving product quality and enhancing brand influence.

Chinese lipstick is still there, and there is a rich industrial chain layout, as long as it continues to develop towards high-precision manufacturing, Apple will always be inseparable from China.

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