- Apple (NASDAQ:AAPL) has put assembler Wistron on probation after workers at a factory in Narasapura rioted due to unpaid wages.
- Local media reports said the riots included property damage and the looting of thousands of laptops and iPhones.
- Wistron assembles Apple's newer low-cost iPhone SE models in the region, which exempts the devices from costly import taxes.
- "Wistron has taken disciplinary action and is restructuring their recruitment and payroll teams in Narasapura. We have placed Wistron on probation and they will not receive any new business from Apple before they complete corrective actions. Apple employees, along with independent auditors, will monitor their progress," says Apple in a statement to Bloomberg.
Apple has ramped up investments and initiatives in India, which currently plays such a minor revenue role it doesn't get an independent segment. Image source: Apple's fiscal Q4 report.
- Wistron says it removed its VP of operations in India and created a hotline for anonymous worker complaints.
- Last month, Apple suspended Wistron rival Pegatron in China for labor violations in a student worker program.
- In September, Foxconn, Wistron, and Pegatron committed to investing nearly $900M in India over the next five years, taking advantage of a $6.7B production-linked initiative from the Indian government.