Tata may buy Apple supplier Wistron’s Karnataka plant, become India’s first iPhone maker

Tata Group is reportedly in the advanced stages of acquiring the Karnataka manufacturing unit of Taiwan-based Wistron, a contract manufacturer for Apple, to become the first Indian iPhone maker.

Sources told PTI the acquisition will be carried out through Tata Electronics, a wholly-owned subsidiary of Tata Sons, the promoter holding firm of salt-to-software conglomerate Tata Group. While Tata Group declined to comment on the matter, no response could be elicited from Apple and Wistron, said a PTI report.

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According to one of the sources, a public announcement on the development would depend on what Apple chooses as the company closely controls its ecosystem.

It is likely that apart from iPhone, once Tata Group takes over the Karnataka plant, other new Apple products could also be assembled from the unit.

Tata’s move to acquire Apple supplier’s unit is expected to give a fillip to Apple’s efforts to tap into production prowess outside of China and drive momentum in the world’s second-biggest smartphone market.

After a news report earlier this week, Minister of State for Electronics and IT Rajeev Chandrasekhar had tweeted, “Bringing national champions into Global Electronics Value chains is a key policy objective of Hon’ble PM @narendramodi ji’s visionary PLI scheme”.

“This news about @TataCompanies getting one step closer to manufacturing the iconic iPhone for global markets is very positive development and will help grow the Indian EMS and supply chain / component Eco-system,” Chandrasekhar wrote.

“@GoI_MeitY welcomes this move, Congratulations Tata and Apple teams,” he said.

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While a booming market for smartphones has added to India’s sheen globally, India’s policy push in the electronics sector has nudged large suppliers to expand aggressively in the country, and driven new players to set up base.

In May this year, Apple CEO Tim Cook called India an “incredibly exciting market” and said it would be a “major focus” for the company, as the iPhone maker highlighted that business in India “set a quarterly record, grew very strong, double-digits year-over-year”.

India is at a “tipping point”, the top honcho had said during the Q2 earnings call of the company.

Apple charted an ambitious retail expansion in India in April this year, when it launched two retail outlets in Delhi and Mumbai during Cook’s first trip to the country in seven years.

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The two stores are “off to a great start,” Cook said during the quarterly earnings call.

“Looking at the business in India, we did set a quarterly record, grew very strong, double-digits year-over-year. So it was quite a good quarter for us, taking a step back, India is an incredibly exciting market,” Cook had said.

(With inputs from agencies)