Wistron confirms waterproof, wireless charging for new iPhone

iPhone assembler Wistron, a smaller rival to Hon Hai Precision Industry and Pegatron, on Wednesday confirmed that waterproof and wireless charging will be incorporated into the new 5.5-inch iPhones to be launched later this year.

"Assembly process for the previous generations of [iPhones] have not changed much, though new features like waterproof and wireless charging now require some different testing, and waterproof function will alter the assembly process a bit," Hwang told reporters after the company's annual shareholders' meeting on Wednesday.

According to Jeff Pu of Yuanta Investment Consulting and Arthur Liao of Fubon Securities, Wistron is splitting orders for upcoming 5.5-inch iPhone with flat displays with Hon Hai, or Foxconn Technology Group.

Apple is expected to release another 4.7-inch handset with flat display and a premium version with a slightly curved screen.

Hwang said he expects his company to ship more smartphones in 2017 than 2016, without providing a number. The executive said that labor costs would continue to rise in China this year, but the company will try to cut costs by increasing the use of automation.

Wistron is also making iPhone SE and iPhone 6 in India, according to Yuanta's Pu. But Hwang said that India's contributions to Wistron's revenue this year will remain "very little," without providing an exact figure.

Wistron has been churning out smartphones for Chinese and local brands in India for over a year now, Hwang said, and that facility has been profitable since late last year.

Wistron's separate India facility for Apple, meanwhile, is also making "a small number" of handsets right now, although Hwang did not reveal a specific figure. Hwang said that he expects Wistron's overall smartphone business in India to break even next year.

He said whether Wistron can grow the number of smartphones it makes for Apple in India will depend on upcoming negotiations between the U.S. company and the Indian government.

A person familiar with India's smartphone landscape told Nikkei Asian Review that the country is set to introduce a new tax system that will benefit imports at the beginning of July. In that scenario, companies may no longer enjoy lower costs through local manufacturing, and hence Wistron may not be able to ensure stellar results from its Indian operations in the future.

Taiwanese assembler sees its India smartphone business breaking even in 2018

DEBBY WU, Nikkei staff writer
Still, Hwang struck a positive note about India's prospect. "We are being very aggressive in expanding our presence in India in addition to smartphone business," he said.

Apple did not respond to an email seeking comments.