Analysts suggest iPhone plant riot could have long-term implications

[tacobell fan]

The iPhone plant riot in India over the weekend is not expected to have much immediate impact on production in the country, but analysts suggest that it might have longer-term implications.

Reports variously say that between ‘hundreds’ and two thousand workers took part in the riot at Wistron’s iPhone assembly plant in Bangalore. Production was suspended due to the damage …

 

The riot was said to have been provoked by underpaid wages.

Contract manufacturer Wistron has confirmed reports that iPhone assembly was suspended following a riot at its plant in Bangalore, India. Video footage (below) shows people attacking assembly units, smashing windows, overturning cars, and starting a fire. Wistron puts the total cost of the damage at 4.38B rupees ($60M).

The violent protest, which took place on Saturday, was said to be over underpaid wages by Wistron. 

Wistron initially claimed the rioters were not employees, but the most likely explanation is that this was a disingenuous statement based on the fact that they are technically employed through agencies. Apple promised a full investigation.

Bloomberg reports that even though iPhone production remains suspended at the plant, the short-term impact of this is expected to be small.

Morgan Stanley analysts wrote the immediate impact for Apple is likely to be negligible because the Kolar complex had started up only in past months with a capacity for just 5 to 10 million iPhones yearly. It is Wistron’s second production site in the country and handles older phones, rather than the latest iPhone 12, they wrote […]

There should be limited fundamental impact in 2020,” analysts Howard Kao and Sharon Shih at Morgan Stanley wrote in a research note. “However, we plan to monitor the situation closely

However, there is some concern about possible broader implications – in particular, whether it will affect Wistron’s standing with Apple.

The incident could affect the Taiwanese assembler’s relationship with Apple, which has shown greater willingness to clamp down on labor violations at its hundreds of suppliers […]

[We will monitor] possible changes in Wistron’s relationship with Apple after this incident, and the progress of Wistron’s Phase II capacity expansion.

China couldn’t resist the opportunity to add its own comment on Apple’s growing moves to diversify its manufacturing and assembly contract operations.

“This is a potential risk when manufacturers consider moving their production lines out of #China where they have most stable labor market supporting the nation to become the largest manufacturing hub,” one reporter at the country’s Global Times said on Twitter.

Wistron has previously said it planned to have 50% of its production outside of China by some point next year.

[AndhraneedSCS]

Plant ni India nundi pampinchestara emiti? 438 Crores damage ante it's not small. 

[Kootami]

jeethalu sariga istey vallenduku alaa chestaru ?

[tom brady]

TN is the best state to have such units..not KA or TG

[narsy]

22 minutes ago, AndhraneedSCS said:

Plant ni India nundi pampinchestara emiti? 438 Crores damage ante it's not small. 

pampinchesi? import duty kadthara for imported phones? lol. emanna na..

its just muscle flexing to warn workers to behave.

inko saari pagal godithey set avtharu. lol.

lekka eyyali, how much profit apple is making on its assembly unit in India. esi cheppali, profit margin thagginchuko so you can pay better wages ani.

because this is exactly what apple does to its suppliers.

[narsy]

3 minutes ago, tom brady said:

TN is the best state to have such units..not KA or TG

why exactly? 

[Assam_Bhayya]

emundhi maha ante China ki back vellipotham antaru 

[Sachin200]

Just now, Assam_Bhayya said:

emundhi maha ante China ki back vellipotham antaru 

We do not want foreign products , atmanirbhar anachu 

[narsy]

2 minutes ago, Assam_Bhayya said:

emundhi maha ante China ki back vellipotham antaru 

They can't go anywhere. They have to manufacture in India. 

[Assam_Bhayya]

Just now, Sachin200 said:

We do not want foreign products , atmanirbhar anachu 

OPPO laaga, edo POCCO phone anta . made in India phone. . . 1 yr kuda pani chesthado kuda cheppalem bro. . . 

[Sachin200]

1 minute ago, Assam_Bhayya said:

OPPO laaga, edo POCCO phone anta . made in India phone. . . 1 yr kuda pani chesthado kuda cheppalem bro. . . 

Agree ! India quality administration  ni revamp cheyali bro 

[Assam_Bhayya]

Just now, Sachin200 said:

Agree ! India quality administration  ni revamp cheyali bro 

ye bro, maree Apple look and quality kakapoyina .. . . at least samsung, One plus, honor quality ayina ok. . 

[jalsa01]

1 hour ago, tacobell fan said:

The iPhone plant riot in India over the weekend is not expected to have much immediate impact on production in the country, but analysts suggest that it might have longer-term implications.

Reports variously say that between ‘hundreds’ and two thousand workers took part in the riot at Wistron’s iPhone assembly plant in Bangalore. Production was suspended due to the damage …

 

The riot was said to have been provoked by underpaid wages.

Contract manufacturer Wistron has confirmed reports that iPhone assembly was suspended following a riot at its plant in Bangalore, India. Video footage (below) shows people attacking assembly units, smashing windows, overturning cars, and starting a fire. Wistron puts the total cost of the damage at 4.38B rupees ($60M).

The violent protest, which took place on Saturday, was said to be over underpaid wages by Wistron. 

Wistron initially claimed the rioters were not employees, but the most likely explanation is that this was a disingenuous statement based on the fact that they are technically employed through agencies. Apple promised a full investigation.

Bloomberg reports that even though iPhone production remains suspended at the plant, the short-term impact of this is expected to be small.

Morgan Stanley analysts wrote the immediate impact for Apple is likely to be negligible because the Kolar complex had started up only in past months with a capacity for just 5 to 10 million iPhones yearly. It is Wistron’s second production site in the country and handles older phones, rather than the latest iPhone 12, they wrote […]

There should be limited fundamental impact in 2020,” analysts Howard Kao and Sharon Shih at Morgan Stanley wrote in a research note. “However, we plan to monitor the situation closely

However, there is some concern about possible broader implications – in particular, whether it will affect Wistron’s standing with Apple.

The incident could affect the Taiwanese assembler’s relationship with Apple, which has shown greater willingness to clamp down on labor violations at its hundreds of suppliers […]

[We will monitor] possible changes in Wistron’s relationship with Apple after this incident, and the progress of Wistron’s Phase II capacity expansion.

China couldn’t resist the opportunity to add its own comment on Apple’s growing moves to diversify its manufacturing and assembly contract operations.

“This is a potential risk when manufacturers consider moving their production lines out of #China where they have most stable labor market supporting the nation to become the largest manufacturing hub,” one reporter at the country’s Global Times said on Twitter.

Wistron has previously said it planned to have 50% of its production outside of China by some point next year.

Edo sal proper ga iste poyedi ga.. eppudu apple gadu kuda mingutadu why no proper labour sal ani

[narsy]

5 minutes ago, Sachin200 said:

Agree ! India quality administration  ni revamp cheyali bro 

yela? Its a simple matter of developing a process over years. like Wistron, Pegatron did.

if a clien comes up with specifications, these companies can manufacture the products in lesss than 6 weeks. that's how streamlined their processes are. from design engineering to manufacturing and assembling.

its not easy to devise something that sparks that kind of efficiency. pitting one manufacturing firm against the othr may do it, but only after they already have a process that works.

[Picheshwar]

1 hour ago, AndhraneedSCS said:

Plant ni India nundi pampinchestara emiti? 438 Crores damage ante it's not small. 

 

41 minutes ago, narsy said:

pampinchesi? import duty kadthara for imported phones? lol. emanna na..

its just muscle flexing to warn workers to behave.

inko saari pagal godithey set avtharu. lol.

lekka eyyali, how much profit apple is making on its assembly unit in India. esi cheppali, profit margin thagginchuko so you can pay better wages ani.

because this is exactly what apple does to its suppliers.

Looks like numbers inflated.

this is from NDTV.

 

Apple Supplier Puts Bengaluru Plant Damage At Up To $7 Million

Thousands of contract workers gathered on the grounds of the Wistron site on the outskirts of Bengaluru on Saturday demanding unpaid wages and better working hours.

 

Taipei: 

The ransacking of an iPhone manufacturing facility in India caused up to T$200 million ($7.12 million) in damage though production facilities were not as badly hit as reported, its Taiwan-based operator Wistron Corp said on Tuesday.

 

https://www.ndtv.com/india-news/apple-supplier-puts-bengaluru-plant-damage-at-up-to-7-million-2338799