Tata Group to Assemble iPhones in India Following Wistron India Acquisition

Tata Group to Assemble iPhones in India Following Wistron India Acquisition

VoM News Desk | November 12, 2023 | 12:57 PM IST | Mobile | Follow on Google News

Tata Group to Assemble iPhones in India Following Wistron India Acquisition

Tata Group to Assemble iPhones in India Following Wistron India Acquisition

The Tata Group has reportedly finalized its acquisition of Apple supplier Wistron India, marking a significant milestone as it becomes the first Indian company to assemble Apple’s iPhone models domestically. This development is a critical step in enhancing India’s position in the global tech manufacturing landscape.

Acquisition Details and Strategic Implications

The process to acquire Wistron India began a year ago, and the Tata Group has now signed a binding share purchase agreement to acquire a 100 percent equity stake. The total value of the deal is reported to be around $750 million (approximately Rs. 6,250 crore), with Tata set to pay $125 million (roughly Rs. 1,040 crore) for Wistron’s assembly lines in India.

Expansion of Tata’s Role in Apple’s Supply Chain

Prior to this acquisition, Tata was already involved in Apple’s supply chain, producing components for the tech giant in its Hosur plant in Tamil Nadu. However, with the takeover of Wistron India, Tata Group elevates its role to a full-fledged iPhone assembler, joining other suppliers like Foxconn and Pegatron that already assemble recent iPhone models in India.

Increasing India’s Share in Global iPhone Production

The move is timely as Apple looks to diversify its production away from China. Analyst Ming-Chi Kuo from TF Securities International forecasts a reduction in Apple’s production in China and an increase in the share of iPhone units manufactured in India for global shipping. By 2024, the percentage is expected to rise from 14 percent to between 20 to 25 percent.

Future Prospects for iPhone Manufacturing in India

Additionally, Kuo suggests that the development of future iPhone models, specifically the iPhone 17, is likely to occur outside China for the first time. The new product introduction process for the iPhone 17 is set to commence in India during the second half of 2024. With the annual release cycle, Apple’s iPhone 16 and iPhone 17 series are anticipated for release in 2024 and 2025, respectively.

This acquisition not only solidifies Tata Group’s position in the global technology sector but also underscores India’s growing prominence as a manufacturing hub for major tech companies.

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.