The iPhone factory riot may affect Apple-Wistron relations

If you have been following the news, a large number of employees of Wistron Company, one of the major manufacturers of iPhones, recently revolted due to low wages and caused a lot of damage to Wistron factory in India. The uprising in India is not expected to have an immediate impact on iPhone production in the country; But analysts say the dilemma could have long-term consequences for Westeron and Apple.

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Hundreds to 2,000 workers were reportedly involved in the riot at the iPhone Wistron assembly plant in Bangalore, India, and production was halted due to damage to the company’s facilities. The riots are said to have been caused by low wages, and Wisteron has confirmed reports of an iPhone assembly suspension following a riot at his Bangalore factory.

The video footage shows people attacking assembly units, smashing glass, overturning machines, and setting them on fire. Wisteron estimates the total cost of the damage at Rs 4.38 billion ($ 60 million). Wisteron claims that the rioters were not employees of the company; But the most probable explanation for Wistron’s statement is that the men in question were temporary workers. These employees are known as “temporary dispatchers”; Because employment agencies temporarily send them to factories.

According to Bloomberg News, even if the iPhone is discontinued at the plant, its short-term impact is expected to be small. In addition, analysts at the Morgan Stanley Foundation believe that the immediate impact of this problem on Apple business will be negligible; The Kular series was launched in recent months with a meager capacity of 5 to 10 million iPhones a year, and is the second Wistron factory in India to produce older iPhones; Therefore, the production of the iPhone 12 will not be harmed, which will be the bulk of Apple’s shipments this year.

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However, there are still some concerns about the wider potential long-term consequences. The incident could affect Taiwanese (Wistron) assembler relations with Apple; Because Apple has recently shown a greater willingness to deal with labor violations in hundreds of its suppliers; Last month, it suspended its relationship with Pagatron, the third-largest iPhone maker, due to student forced labor in the company’s factories.

It goes without saying that Wisteron had previously announced plans to move 50 percent of its production out of China next year, which could help Apple reduce its dependence on China.

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