Did Apple block Tata and Vivo India's massive deal?
Tata Group has reportedly abandoned its plan to acquire a controlling stake in the Indian arm of Chinese smartphone giant Vivo. The proposed deal, which would have seen Tata Group take over 51% of Vivo India's business, faced opposition from Apple. The US tech giant, a key manufacturing partner of the Tata Group, expressed discomfort with the transaction, according to The Times of India.
Apple's discomfort led to the deal breakdown
Apple viewed any potential agreement between Tata and Vivo as a partnership with a competitor. This unease reportedly led to the breakdown of talks between the two companies. Apple manufactures its devices at Tata Group facilities in Bengaluru, allowing Tata not only to produce iPhones for sale in India but also for the global markets.
Tata Group's significant role in global electronics manufacturing
The association with Apple has given Tata significant credibility within the global electronics manufacturers' ecosystem. The acquisition of Wistron's factories by Tata was a significant step into this ecosystem, allowing the Indian conglomerate to break into Apple's key supplier network. Currently, Tata manufactures iPhone 15, iPhone 15 Plus, and other models in India. Reports suggest that Apple also plans to manufacture the all upcoming iPhone 16 series models in the country.
Chinese firms' strategy to align with Make in India initiative
Chinese companies have been selling controlling stakes to local partners to gain easier access to funding and emerge as trusted partners in India's Make in India initiative. This trend has been seen with China's SAIC group selling majority control to Sajjan Jindal's JSW group and Sunil Vachani-led Dixon Electronics buying a 56% stake in Ismartu India — a subsidiary of China's Transsion Technology, which manages brands such as Infinix, Itel, and Tecno.
Tata Group's future strategies after Vivo deal collapse
The collapse of the Vivo deal may force Tata Group to reassess its future strategies. The company could potentially lose partnership opportunities with other tech giants which are competing with Apple. Despite this setback, Tata Group continues to expand its Apple operations, including nearing a deal in April to acquire a controlling stake in a Pegatron facility in Tamil Nadu, India.
