Vistron exiting the iPhone business and potential challenges for Tata

Vistron, despite being Apple's first supplier in India, couldn't grow as a full-fledged manufacturer and struggled to negotiate higher margins with Apple. Vistron's inability to access vendor managed inventory holding, a crucial component for efficient iPhone production, also hindered its growth. Tata should be wary of facing similar challenges. Furthermore, Apple's existing relationships with Foxconn and Pegatron, who have extensive manufacturing expertise and handle inventory management for Apple, may reduce the likelihood of moving the iPhone business to Tata's camp. Tata will need to overcome its previous production and quality issues and work hard to succeed in the iPhone manufacturing market.