Riots In iPhone Factory As Apple Moves To Increase 2021 Production
Apple is planning a 30% increase in production for the first half of 2021 despite staff at one of their manufacturing plants in India rioting over poor pay and nonpayment of salaries.
The ethically questionable iPhone maker plans to produce up to 96 million iPhones for the first half of 2021, after demand for its first-ever 5G handsets surged amid the pandemic according to sources.
The only problem is that enraged iPhone workers are up in arms resulting in millions of dollars in damage at an Apple supplier’s factory in India run by key Apple partner Wistron a Taiwanese Company who with Foxconn assemble Apple products.
Thousands of contract workers demanded unpaid wages and better hours, this is despite Apple claiming that they only employ ethical Companies who treat their workers “fairly”.
The demonstration turned violent after police arrived, with workers smashing windows, vandalizing cars and setting at least one fire, according to videos from the scene.
The protest prompted Apple to launch its own probe of whether Wistron violated supplier guidelines at the factory on the outskirts of Bengaluru, India’s tech hub.
Apple recently asked suppliers such as Wistron and Foxtel to build some 95 million to 96 million iPhones, including the latest iPhone 12 range and the older iPhone 11 and iPhone SE models in the first half of 2021 with some insiders tipping a battle with Samsung who are also planning new models in early 2021.
multiple people familiar with the matter told Nikkei Asia that industrywide shortages of key components could threaten that target.
The tentative full-year forecast that Apple shared with its suppliers suggests it plans to build up to 230 million iPhones in 2021, including both old and new models, the people said. This would mark a 20% rise from 2019, though the target will be regularly reviewed and revised in response to any changes in consumer demand, they added.
“The planned production for the next quarter and the following quarter have been decided and the outlook is quite bright,” an executive at a key Apple supplier told Nikkei. “The iPhone 12 Pro, and iPhone 12 Pro Max are especially stronger than we estimated, while the demand for iPhone 12 is in line with the forecast, but iPhone 12 mini is a bit sluggish,” the person added.
Wistron is currently working on restoring the plant and calculating the exact amount of loss. It is supporting the local authorities’s investigation into the incident and in talks with insurance companies over the damage.
As to allegations about workers at the India plant not getting paid the sums as promised, Wistron has declined to comment. It said the local authorities are investigating the incident and the company has completely followed the law.