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Tata Group in talks with Wistron to buy Apple iPhone factory in Karnataka for Rs 5,000 crore

Tata Group in talks with Wistron to buy Apple iPhone factory in Karnataka for Rs 5,000 crore

Wistron is one of the three iPhone makers in India alongside Foxconn and Pegatron. Wistron’s Karnataka facility is responsible for the manufacturing of iPhone SE, iPhone 12 and iPhone 13.

Tata Group may soon buy the Apple iPhone factory owned by Wistron Tata Group may soon buy the Apple iPhone factory owned by Wistron

Tata Group is reportedly in talks with one of the three Apple iPhone makers in India to buy their manufacturing facility in Karnataka. A report claims that the deal has been pegged at Rs 4,000 crore- Rs 5,000 crore. The Economic Times report cited people familiar with the matter. However, neither Wistron or Tata Group have revealed details about the deal. 

Wistron is one of the three iPhone makers in India alongside Foxconn and Pegatron. Wistron’s Karnataka facility is responsible for the manufacturing of iPhone SE, iPhone 12 and iPhone 13. The iPhone 14 non-Pro models, along with the other previous generation devices, are being produced in the Foxconn and Pegatron facilities. 

Also read: Apple boosts iPhone 14 production in India by bringing in new supplier
 
According to the report, Tata Electronic Pvt Ltd. (TEPL), a wholly-owned subsidiary of Tata Sons, will be aiming to take over the facility. TEPL was established for Tata's expansion in the field of smartphone and electronics manufacturing. Tata could also take up a share of Wistron's manufacturing business beyond smartphone manufacturing as well. 

Also read: iPhone made by Tata Group in India? It may happen soon

Tata Group's move will allow Apple to reduce its dependency on the Chinese market which is exposed to stricted covid lockdowns and economic uncertainty. Currently, Apple's biggest supplier Foxconn is facing issues with the production of iPhone 14 and iPhone 14 Pro models at its plant in Zhengzhou. After massive worker unrest, the company is expected to fall behind in achieving shipment targets. Analyst Ming-Chi Kuo has claimed that the shipments could shrink by 15-20 million units due to the worker unrest last week. 

Published on: Nov 30, 2022, 10:28 AM IST
Posted by: Danny Cyril Dcruze, Nov 30, 2022, 9:59 AM IST