Apple supplier Wistron has denied reports of its factory in China suspending production of the iPhone by Apple due to the use of “unauthorized components.” The original report claimed that there was a two-week production suspension, though Wistron denies any such reports and claims its factories are operating normally.
The original report from Taiwan’s Commerical Times claimed that Apple had asked Wistron to stop iPhone 8 Plus production at its Kunshan plant in China for two weeks until it investigated reports of the supplier using waterproof components that were not certified by it.
Wistron maintained in a filing with the Taiwan Stock Exchange March 15 that the company will not comment on matters concerning specific clients and there was not a “two-week production suspension as reported and operations remain completely normal.”
The report further claimed that Wistron had penalized several of its high-level executives in wake of the accusations so as to please Apple.
However, Wistron has denied all and any such claims in its filing to the Taiwan Stock Exchange this morning. It, however, also mentioned that it cannot comment on matters between its clients and thereby did not provide much details about the issue.
Wistron is a relatively smaller iPhone 8 Plus supplier for Apple, with Foxconn manufacturing up to 80 percent of the iPhones for Apple. The company, however, does produce other iPhones for Apple. Wistron is Apple’s lone supplier to have set up an iPhone SE assembly plant in India which it is planning to expand to manufacture iPhone 6s as well. The plant caters specifically to the demand for the old and low-cost iPhones in India, and by setting up a factory in India, Wistron and Apple are able to get many tax breaks which then allows Apple to sell older iPhones at a lower rate in the country.
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