Wistron pouring $340M into facilities associated with India iPhone production

Posted:
in iPhone edited January 2
Apple production partner Wistron is increasing its investment in manufacturing for the Indian market, with the upped spending being made to expand the plants that manufacture iPhones for the local market to avoid international import issues.

The iPhone 6s, one of two iPhone models produced by Wistron in India
The iPhone 6s, one of two iPhone models produced by Wistron in India


A filing at the Taiwan Stock Exchange reveals Wistron has authorized its subsidiary in India to spend 30 billion rupees ($340.62 million), in order to expand and meet future demand for its services in the region. Currently the company has a paid-up capital of 1.8 billion rupees for its Indian operations, making the investment a considerable increase in resources.

The company advised it is expanding its investment to ramp up production capacity in its Narasapura plant, Digitimes reports, with the first phase of its expansion expected to complete in the first half of 2019.

Wistron's operations in India notably includes assembly of the iPhone SE and iPhone 6S for the local market, with the investment thought to help reduce the impact on production caused by various factors.

For the Indian market, Apple still relies on imports to make up the bulk of purchases in the country not already covered by Wistron's supply. Apple is likely to be hit by a proposed luxury goods tax, one that is designed to discourage imported goods, and one that could be mitigated by increasing production in the region.

A less pressing issue is the ongoing trade dispute between the United States and China, which may eventually force a price rise for the iPhone in the United States of about 10 percent. The issue is sufficient enough that reports have surfaced suggesting the supply chain may shift some elements outside of China in order to evade the extra levy.

The investment may not entirely center around the iPhone, as it is reported Wistron is also planing to move some of its PC, Internet of Things, medical, and cloud services businesses to India.

Wistron is not the only Apple partner apparently looking to increase its local production. In December, Foxconn was reportedly planning to invest $214 million on expanding its own plant in India, in order to accommodate iPhone production.

DigiTimes is generally poor at predicting Apple's future product plans, but is an accurate manufacturer financial watchdog, in regards to capital expenditure.

Comments

  • Reply 1 of 12
    racerhomie3racerhomie3 Posts: 1,011member
    That is good. Foxconn & Wistron should diversify.
    edited January 2 williamlondon
  • Reply 2 of 12
    gatorguygatorguy Posts: 20,278member
    I think this is the same expansion announced back in March/2018 isn't it?
    https://telecom.economictimes.indiatimes.com/news/wistron-to-invest-rs682-cr-to-set-up-new-manufacturing-facility/63288685

    Of equal interest IMO is the Indian Cellular and Electronics Association pushing for a change in focus regarding Indian smartphone manufacturing. Rather than pushing rules that encourage production for domestic consumption, as the current government policies promote and the proposed National Policy on Electronics would formalize, they want it to shift more towards "special considerations" in a way that favors the export industry, ie be more like Vietnam and China. 

    Of note tho and potentially a stumbling block are the commitments India has made to the WTO which may limit those "special considerations". 
    edited January 2
  • Reply 3 of 12
    racerhomie3racerhomie3 Posts: 1,011member
    I hope Foxconn ,Wistron invest in Pakistan ,Bangladesh & Afghanistan. This could provide valuable diversification & jobs.
    Maybe by 2020s Africa will be stable enough for iPhone manufacturing.
  • Reply 4 of 12
    Mike WuertheleMike Wuerthele Posts: 4,339administrator
    gatorguy said:
    I think this is the same expansion announced back in March/2018 isn't it?
    https://telecom.economictimes.indiatimes.com/news/wistron-to-invest-rs682-cr-to-set-up-new-manufacturing-facility/63288685

    Of equal interest IMO is the Indian Cellular and Electronics Association pushing for a change in focus regarding Indian smartphone manufacturing. Rather than pushing rules that encourage production for domestic consumption, as the current government policies promote and the proposed National Policy on Electronics would formalize, they want it to shift more towards "special considerations" in a way that favors the export industry, ie be more like Vietnam and China. 

    Of note tho and potentially a stumbling block are the commitments India has made to the WTO which may limit those "special considerations". 
    It appears to be a new one. The previous capital investment went elsewhere. We're looking into it.
    GeorgeBMac
  • Reply 5 of 12
    GeorgeBMacGeorgeBMac Posts: 4,128member
    That is good. China should bleed.
    Why? 
    China has been a great partner for Apple.
    .... Oh!   Politics!   Specifically, U.S. politics.

    I'm glad to see Apple expanding the Indian market --- but not because of China.
  • Reply 6 of 12
    GeorgeBMacGeorgeBMac Posts: 4,128member
    I hope Foxconn ,Wistron invest in Pakistan ,Bangladesh & Afghanistan. This could provide valuable diversification & jobs.
    Maybe by 2020s Africa will be stable enough for iPhone manufacturing.
    That was a joke.   Right?

    (Africa is a maybe -- but the only ones investing there are the Chinese.)
  • Reply 7 of 12
    tzeshantzeshan Posts: 1,885member
    That is good. China should bleed.
    Yes, Trump trade war will greatly hurt China. 
  • Reply 8 of 12
    tzeshantzeshan Posts: 1,885member

    That is good. China should bleed.
    Why? 
    China has been a great partner for Apple.
    .... Oh!   Politics!   Specifically, U.S. politics.

    I'm glad to see Apple expanding the Indian market --- but not because of China.
    Trump trade war will greatly hurt China. It is obvious. 
  • Reply 9 of 12
    GeorgeBMacGeorgeBMac Posts: 4,128member
    tzeshan said:

    That is good. China should bleed.
    Why? 
    China has been a great partner for Apple.
    .... Oh!   Politics!   Specifically, U.S. politics.

    I'm glad to see Apple expanding the Indian market --- but not because of China.
    Trump trade war will greatly hurt China America and Americans. It is obvious. 
    Fixed that for you....

    China is a smart business man -- They know that when one door closes they just open another one. 

    But regardless:  You ignored my point.   I said "China has been a great partner for Apple."
    So why would Apple/Foxconn abandon a place that has been good to them and for them and migrate to unstable areas?  That would be stupid.
    muthuk_vanalingam
  • Reply 10 of 12
    tzeshantzeshan Posts: 1,885member
    tzeshan said:

    That is good. China should bleed.
    Why? 
    China has been a great partner for Apple.
    .... Oh!   Politics!   Specifically, U.S. politics.

    I'm glad to see Apple expanding the Indian market --- but not because of China.
    Trump trade war will greatly hurt China America and Americans. It is obvious. 
    Fixed that for you....

    China is a smart business man -- They know that when one door closes they just open another one. 

    But regardless:  You ignored my point.   I said "China has been a great partner for Apple."
    So why would Apple/Foxconn abandon a place that has been good to them and for them and migrate to unstable areas?  That would be stupid.
    This news did not say Apple.Foxconn abandon China. It is more likely Wistron expanding into India. Apple presence was very small in India. So there is room for Apple to expand in India. 
  • Reply 11 of 12
    tzeshantzeshan Posts: 1,885member
    That is good. Foxconn & Wistron should diversify.
    This is a pipe dream. India did not help iPhone sagging sales. Apple is doomed by Trump. 
  • Reply 12 of 12
    GeorgeBMacGeorgeBMac Posts: 4,128member
    tzeshan said:
    tzeshan said:

    That is good. China should bleed.
    Why? 
    China has been a great partner for Apple.
    .... Oh!   Politics!   Specifically, U.S. politics.

    I'm glad to see Apple expanding the Indian market --- but not because of China.
    Trump trade war will greatly hurt China America and Americans. It is obvious. 
    Fixed that for you....

    China is a smart business man -- They know that when one door closes they just open another one. 

    But regardless:  You ignored my point.   I said "China has been a great partner for Apple."
    So why would Apple/Foxconn abandon a place that has been good to them and for them and migrate to unstable areas?  That would be stupid.
    This news did not say Apple.Foxconn abandon China. It is more likely Wistron expanding into India. Apple presence was very small in India. So there is room for Apple to expand in India. 
    My response was to comments saying that this move was to punish/abandon China -- and/or move to unstable areas.
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