What you need to know
- Apple may struggle to find an alternative iPhone supplier following a riot at a plant in India.
- Supplier Wistron is currently on probation, but it is reportedly very hard for Apple to switch due to lengthy validation processes.
A new report says that Apple may struggle to find an alternative supplier to Wistron in India following a riot at one of its plants.
As reported by Digitimes:
The riot at a Wistron plant in India may result in Apple looking for alternative makers of the iPhones that the Taiwanese ODM has been handling, but switching orders among suppliers may not be easy, according to industry sources.
Wistron's production at the India plant will definitely take a hit in the near term, as Apple has placed the ODM on probation and will not give it any new orders until it completes corrective measures.
But it remains to be seen whether the plant's long-term prospects will also be affected. It is not easy for Apple to switch its iPhone orders to non-iPhone production partners quickly due to the lengthy validation required, the sources said.
The report says rival Pegatron may be in line to take some of the iPhone orders, however, this would be a step back in Apple's recent efforts to shift much of its iPhone production away from China. The report further says main supplier Foxconn could also pick up some of the orders, as the Taiwanese firm is already "running in a high gear" to keep up with iPhone 12 Pro demand.
The report, however, notes that iPhone 12 Pro and Pro Max supply is "remaining tight" and that Foxconn may not have the available capacity that Apple needs to fill the void left by Wistron.
Workers broke out into a riot at a factory in India following allegations of unpaid wages.