Apple has temporarily stopped working with Wistron, the iPhone supplier that this month had riots break out at its Indian factory due to alleged mistreatment of employees.
In a statement, Apple said that it has put the manufacturer on probation. It will not receive new Apple business until it has carried out corrective actions.
The state government in Karnataka, India found multiple labor law violations at the iPhone factory where workers rioted last weekend, a new report claims.
The riot took place at a Wistron factory. It resulted in $7 million of damage, with thousands of iPhones stolen during the protest. The government report — from the Department of Factories, Boilers, Industrial Safety and Health — says that underpayment of wages, poor factory conditions, and irregular hours were all common at the plant.
Riots broke out over the weekend at a Wistron factory in southern India that produces iPhones, resulting in around 100 people being arrested. Thousands of iPhones were stolen during the incident.
The riots were reportedly related to allegations about unpaid wages and other exploitation. Workers were allegedly not paid for several months, and made to do mandatory overtime. Protestors broke windows at the factory on the outskirts of Bangalore, pulled down CCTV cameras, and flipped cars onto their sides.
Apple’s partnership with Foxconn, its largest manufacturing partner, is “eroding” as a result of the supposedly shady tactics that Foxconn is using in an effort to boost profits, according to a new report.
It is claimed that Foxconn has exaggerated hiring counts, used Apple equipment to produce orders for other companies, and cut corners on component and product testing.
iPhone assemblers in India have been forced to suspect production due to a country-wide COVID-19 lockdown, according to a report published on Wednesday.
Facilities owned by Foxconn and Wistron are out of action for now. Production won’t resume until Prime Minister Narendra Modi’s government lifts new lockdown measures.
The COVID-19 coronavirus outbreak may be continuing apace, but Apple manufacturers are getting back to work.
According to two new reports published Wednesday, Apple contract manufacturers Compal Electronics and Wistron are joining Foxconn in planning for production levels to return to normal by the end of March. Apple’s A-series chipmaker TSMC is also gearing up to start producing its new 5-nanometer chips.
Apple contract manufacturer Wistron is reportedly ramping up its iPhone production abilities in India. Wistron already has two plants located in Bengaluru, which have been producing iPhones for the local market. But now it’s got a third, located in Narasapura, which will also build phones for Apple.
This will greatly increase Wistron’s abilities to build large quantities of iPhones for Apple.
Struggling Apple display maker Japan Display claims it has nailed down an extra $830 million in bailout financial support from Japanese asset manager Ichigo Asset Management.
Ichigo joins Apple and Apple contract manufacturer Wistron in the effort to save the beleaguered business. And it wouldn’t have done it without Cupertino’s support.
Two more manufacturers which regularly do work with Apple are eying up new potential plant locations outside of China. Wistron is reportedly looking to open a factory in the U.S. or, as a backup, Mexico. Chassis maker Catcher is, meanwhile, looking at Southeast Asia or Taiwan as locations.
This comes at a time when fears about a burgeoning trade war between China and the U.S. is making people worried about possible future trade.
Apple supplier Wistron has started manufacturing iPhone 7 handsets in India. This is the third model iPhone to be made in the country, following the iPhone SE and iPhone 6s.
“We are proud to be producing iPhone 7 in Bengaluru for our local customers, furthering our long-term commitment in India,” Apple told the Economic Times newspaper.
