According to New Delhi media reports, some analysts said that the Wistron factory riots will force Apple to strictly require suppliers to follow the code of conduct in India. As part of the "China+" strategy, Apple will have more suppliers in India participating in its business.
Violence at Wistron’s factory brought blemishes to the image of Apple and India. Apple is a big-name brand respected by the Indian government. IDC Research Director Navkendar Singh (Navkendar Singh) said: "This has left a stain on India. India has long been a convenient place to do business and is also a popular place for global brands." According to information, a group of workers last Saturday The Taiwan iPhone supplier’s factory in Kolar, Karnataka, was destroyed due to alleged wage disputes between third-party contractors. At present, the police have detained more than 100 people, and this incident led to the destruction of the production line.
According to reports, Wistron (India) estimates that the violent incident on Saturday has caused serious losses. Neil Shah, vice president of the research department of
Counterpoint, said that this issue should require everyone to turn their attention to the labor treatment and management of Apple suppliers to ensure that these conditions meet Apple's standards and will not directly Or indirectly affect Apple.
TechArc founder and analyst Faisal Kawoosa (Faisal Kawoosa) said that Apple will need more rigorous, due diligence, and hopes to have a reliable partner to deal with these issues. He said: “Not only the brands, but their business will also be affected because these factories will be used for export purposes.” Z1z
Cavosa added that the government needs to solve this problem and make India a friendly investment destination. “Apple is committed to ensuring that everyone in our supply chain is dignified and respected. We have sent a team and immediately launched a detailed investigation at Wistron’s factory in Purasata, India.”
Apple follows very Strict supplier code of conduct, monitor suppliers through annual audits and interviews, and immediately follow up any violation reports. According to the iPhone manufacturer’s supplier code of conduct, “suppliers must meet all legal requirements related to wages and benefits, including timely and accurate payment of wages.” In addition, wage deductions are prohibited as a disciplinary measure. All temporary workers and outsourced labor should be used within the scope of local laws.
Apple’s main supplier Pegatron is currently in India to determine the location of the iPhone production facility.
IT and the Minister of Telecommunications Ravi Shankar Prasad (Ravi Shankar Prasad) recently revealed that about 8-9 partners have decided to come to India to establish facilities to support iPhone production.
Cavosa said that as more and more partners come to India, Apple needs to pay close attention to how partners treat the Indian labor force. "When the brand is known for certain rules, but the partners do not follow these rules, these gaps will appear."
However, analysts said that the problem of Wistron's factory has minimal impact on the iPhone production in India, because Apple The iPhone SE2 model mobile phone assembled at the Kraal plant in India has sufficient stock on the market.
According to reports, if Wistron’s Corral plant is still affected, Wistron may transfer part of its production to other plants. Z1z
CMR Industry Intelligence Group Chief Prabhu Ram said: “The new generation of iPhone SE 2020 and iPhone 11 performed exceptionally well in the third quarter of 2020, accounting for 70% of Apple’s iPhone shipments. The future impact on iPhone SE performance may be minimal.” Tarun Pathak, associate director of
Counterpoint, said that this issue will not undermine Apple's overall expansion strategy. "However, this is a very good learning process. In India,Encounters are equally important. ”Z1z
