‘Made in India’ iPhone 12 from Foxconn is expected to hit the stores within two months, in accordance with Apple’s original plan of manufacturing the iPhone 12 at the Foxconn facility, Tamil Nadu, Economic Times report.
Apple’s decision to put Wistron Corp on probation over labour practice lapses will not derail the Cupertino-based company’s plans of manufacturing its latest flagship model, iPhone 12.
However, there is a question mark over the future of the less expensive iPhone 12 Mini, which was to be manufactured at the Wistron facility in Karnataka. The plant was hit by labour violence earlier this month over non-payment of dues.
Wistron on Saturday accepted that there were lapses in wage payments, and Apple said the Taiwanese contract manufacturer would not be given new business till it takes corrective action.
An industry executive said availability of locally-made iPhone 12 Mini will be delayed and Apple is yet to decide whether to shift its production to Foxconn, or wait for Wistron to rectify practices and restart the plant.
“Shifting production is a much more complex process since Wistron had already imported the components for iPhone 12 Mini, and set up a production line,” an executive said.
At present, Foxconn manufactures mid-segment models such as iPhone 11 and XR for Apple in India, while Wistron makes affordable models such as iPhone 7 and SE. These models are imported as well.
Rise in Imports Industry executives were of the view that temporary closure of production at Wistron will not impact availability of locally-made iPhone models, as there is sufficient inventory.
But some analysts said the smartphone maker’s imports to the country could rise over 30% in January-March, and even more going forward.
“Until the third quarter, iPhone 11 and SE contributed 91% to total Apple shipments in India,” said Prabhu Ram, head, industry intelligence group, CyberMedia Research (CMR).
“The fourth quarter is also expected to end on similar lines, with adequate inventory in the market. But, as demand begins to shift towards the 12 series, we believe imports could rise up to 30%, beginning next month.”
According to analyst estimates, there could be a monthly loss of 40,000 units due to the Wistron plant shutdown. Close to 40% of total iPhones sold in India are assembled locally, the major share by Wistron.
While a rise in imports won’t impact prices as such, the 25% that Apple and its contract manufacturers save on duties and taxes by assembling locally, will be lost, CMR’s Ram said.
