"Make in India" has just added another risk issue in its path as Apple's India manufacturing partner, Wistron, is forced to handle an estimated $60 million in damages due to the latest hit on its grandiose project.
Wistron Plant Damages Hit Estimated $60 Million
On Saturday, thousands of contract workers took out their frustrations on a Wistron plant in Southern India, resulting in an estimated $60 million in damages for Apple to manage.
The dent in Apple's ambitious "Make in India" started after contract workers alleged that they were not getting paid properly. Aside from damaging equipment at the Wistron plant, the angry workers also wrecked cars.
Over 5,000 contract workers have been sued due to the destruction of factory property and the assembly plant was shut down.
One source with knowledge of the matter, and who spoke on condition of anonymity, said the location where critical smartphone assembly parts were stored was also crashed during the chaos.
Industry analysts said the problem at the Wistron plant could delay Apple's upcoming projects such as the assembly of the anticipated iPhone 12.
Apple has launched a probe into the complaint of the contract workers. Winstron said it is working to get the factory running again as soon as possible.
Long, Rough Road Ahead
Even before the violence that took place in Wistron, there have been doubts about whether Apple could make it big in India.
Earlier this year, market research firm Canalys released a report that said Apple only accounted for a meager two percent of India's massive smartphone market, indicating that the company still has a long way to go in capturing the bigger part of the market.
One of the main problems that Indian consumers raised against Apple is the products' expensive price tags. The iPhone maker has tried to address the issue by pushing for local manufacturing, starting in 2017.
Exploitation at Wistron?
Before the violence erupted over the weeked at the Bengaluru site, there have been earlier allegations of worker "exploitation" in the factory.
General secretary of the All India Trade Union Congress, M.D. Harigovind, said that the chaotic outcome of events started with "the brutal exploitation of workers and sweatshop-like conditions."
Aside from reports of unfavorable working conditions at the manufacturing site, Indian workers have also been pushing back against deregulation. The workers said the government itself is attracting global companies at the expense of good working conditions for locals.
Just last month, Wistron set up a new warehouse in Hoskote that is expected to house nearly 3,000 staff and contract workers. The company has yet to comment on the new site's construction.
While the new warehouse could help Apple broaden its goals for the "Make in India" project, the recent issue at the Bengaluru plant could hamper the target of unveiling the iPhone 12 next year.
