Smashed! Apple's Path to India has been dealt a blow. The OEM was beaten, looted and burned by nearly 2,000 people! Regret moving out of China

In response to international tensions and the impact of the global epidemic, Apple plans to shift some of its production of iphones and other products out of China.

But unexpectedly, The road that Apple company builds a factory in India, suffer a heavy blow unexpectedly, contract factory was destroyed

Wistron's factory in India was hit by violence

There was a massive beating, looting and arson at the iPhone factory of Wistron, a Taiwanese technology company, on the outskirts of Bangalore, India.

Most of the 2,000 workers on duty at the plant were involved in the violence.

Employees smashed office facilities, assembly departments and even set fire to vehicles, the report said.

Groups of workers threw stones, smashed factory Windows, overturned and burned cars, damaged production equipment and attacked executives' offices, according to videos posted online and Indian television reports.

Video footage posted online showed workers at the scene not only smashing Windows and equipment in offices on the first floor, but also damaging some production line equipment on the second floor. Some cars parked outside were also smashed, overturned and even burned.

Local police rushed to the scene and arrested some of the attackers.

About 100 rioters have been arrested, according to the Economic Times of India.

As for the damage, it is rumored to have damaged more than 21,000 iphones, several cars, and more than 1 billion euros worth of machinery and fixed property.

It is quite possible that some of the iphones were damaged in the attack, but it is not clear whether there was such a large amount.

Besides, with a total investment of around 29 billion rupees (325 million euros), it's clear that you wouldn't have 1 billion euros of machinery and fixed property to smash.

Is it a pay dispute or something else?

According to people familiar with the matter, the employees are doing so because of salary issues -- specifically, the move was triggered by anger over the company's failure to pay the amount promised when they joined the company.

According to an employee who complained to TOI, an engineering graduate was promised 21,000 rupees, but ended up getting 16,000 rupees, which was reduced to 12,000 rupees in recent months.

The employee also said that if he is a non-engineering graduate, his monthly salary has been reduced to 8,000 rupees (about 710 yuan), and the promised salary continues to decline, which is very frustrating.

What's more, the employee claimed that on Friday night, when the employees were discussing the company's problems, someone claimed that their bank account had received only 500 rupees, or about 44 yuan, on arrival.

Wistron disagrees.

Wistron says it pays all its monthly payments to staffing agencies on time and under contract to pay workers' wages.

Wistron, meanwhile, insists this is not a strike, but a crime.

The local public security is not good for a long time, so the new factory becomes the target of the gangsters. People from outside run to the company to make trouble, not the employees.

According to Taiwan's Central News Agency, a person familiar with the matter said that Wistron had commissioned five local labor companies to find and hire workers for the company, and that Wistron had duly allocated funds to the companies each month on promised wage terms.

Therefore, Indian media reports claiming that Wistron had been continuously reducing the salary it had promised to its employees are totally untrue. This should be a dispute between the labor company and the workers.

Later, The Minister of Industry in Karnataka, Mr. Chattal, said in an interview with the media that the preliminary investigation showed that Wistron had paid the salaries paid by the labor company on time, and that it was further investigating whether there were outside forces involved, as well as the transparency and verification of the flow of salaries.

"They were shocked by the violence of the workers who had any complaints against the company but didn't complain to the government managers," Mr. Chattal said. "The government is investigating whether outside forces encouraged the workers to ignore the law."

Foreign companies in India often happen "inside magic outside ghost" situation

It is understood that India frequent foreign capital enterprise internal Indian management, or foreign companies hire lawyers, accounting professionals in collusion makes disturbance outside even officials, to act as an intermediary to coordinate the local laws and rules are not familiar with the foreign capital enterprise to pay money to solve the problem, these illegal intermediary to outsiders spoils.

A local business in India over a long period of Taiwanese executives also said that India's frequent foreign companies have ghost outside the "avatar" case, from the Indian chief executive officer, general manager, chief financial officer, next to the head of the Indian managers and management workers, have occurred in external makes disturbance (sometimes even Indian officials), and to the company blackmail enrich themselves.

But in the event of being caught out by foreign company inspectors, there have also been incidents of these "inner gods" encouraging grassroots rioting and extorting foreign companies that are isolated and unfamiliar with India's complex laws.

The Taiwanese businessman said this "unique Indian practice" was repeated as some foreign companies tried to minimize the incident and meet the extortionists' conditions to resume production as soon as possible.

However, the police are investigating whether the wistron incident involved outsiders.

A was the first in the south of wistron factory staff said that the past Taiwan's management team, even if executives must run around the United States, Taiwan and India, but would like to spend time to interact with Indian workers, numerous social events and even holding the guitar singing performance, together with the Indian employees eat the same food, mix, like a family, but this kind of situation in the new team in later, is rarely seen.

Taiwanese stressed that in Indian culture and life habit is completely different from Taiwan business enterprise, the most important thing is to blend in local, but it does some Taiwanese companies to build a factory to invest in India in recent years, believes it is "world-class giant", but also through the prime minister modi office, can cope with any problem and improve the existing mechanism, completely refused to contact with the local community, and even Taiwan.

But India is more federal, and the provinces are more independent. If friendship is not established in normal times, "of course there will be no help" when problems arise.

Apple is shifting some of its production to India

Since the beginning of this year, the Indian government has been "inviting" foreign companies to invest in the country.

In April, the Indian government negotiated with more than 1,000 American multinationals to lure them away from China to invest and set up factories in India, promising and offering incentives through embassies abroad.

In May, India introduced Labour law amendments or exemptions and unveiled a Rs20tn package.

Apple has made a big push into India, the country's minister of Electronics and Information Technology Prasad said recently.

Even during the outbreak, He revealed, Apple had "nine supply chain partners moving from China to India".

The report said India was "proud" that 22 mobile phone makers and 40 electronic components makers had applied to India to set up new units or expand existing factories as the global manufacturing industry sought new footholds.

The 22 handset makers have pledged to invest 110 billion rupees (9.74 billion yuan) to set up factories in India over the next five years, Prasad said On Aug. 1 local time, according to media reports.

India has become the world's second largest smartphone market as the country's mobile phone market has grown, but iphones account for only 1 percent of the country's smartphone sales due to their high prices, far behind other mainstream mobile phone brands.

In order to better compete for the market, Apple chose to increase production of iphones in India and waive the high import tax on iphones, thus reducing the price of iphones in India.

Wistron, another Apple supplier, has begun assembling several iPhone models at its factory in Bangalore, the technology hub in southern India.

Wistron, meanwhile, is building a new factory to make more Apple devices.

It should be noted, however, that India cannot produce the most advanced iphones and ipads, because local workers are not up to the technical level, so India can only produce the older Apple products.

Back to Apple's move to India, some analysts say it's actually not that easy for Apple to leave its Factories in China.

Chinese manufacturers can produce as many as 600,000 iphones a day, and Chinese suppliers account for about 50 percent of All Apple suppliers.

Ps. This article is compiled and compiled by the external cross-research center and external market. Please indicate the source of the reprint.