Apple Supplier's iPhone Factory Suffers $7M In Damages During Violent Worker Protests
Apple Inc (NASDAQ: AAPL) supplier Wistron Corporation suffered damages up to $7.12 million (NTD 200 million) in the ransacking of its plant by Indian workers, Reuters reported Tuesday (Taipei time).
What Happened: The manufacturing unit of the Taiwanese firm did not suffer damages to the extent reported. The company had estimated damages to the tune of $60 million in a police report, according to Reuters.
Wistron reportedly told the Taiwan Stock Exchange on Tuesday that major production facilities and warehouses did not suffer serious damage and it estimated the losses to be between $3.5 million and $7.1 million (NTD 100-200 million).
Meanwhile, Apple said Monday it was investigating if Wistron was in violation of its supplier guidelines.
The Tim Cook-led company is dispatching staff and auditors to the site and is cooperating with the local police in its investigation.
Why It Matters: The Wistron facility came under attack by workers who claim they were brutally exploited.
Last month, the Cupertino, California-based tech giant had put another Taiwanese supplier — Pegatron Corporation — on probation after it uncovered cases of labor law violations.
Chinese employees of Apple on the mainland have alleged that the company is complicit in the violation of the country’s labor laws.
Price Action: Apple shares closed nearly 0.5% lower at $121.78 on Monday.
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