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Report: Apple Looking For More Partners In India

BW Online Bureau Sep 09, 2024

As Apple intensifies its local manufacturing operations in India, it aims to transcend mere assembly and establish a comprehensive ecosystem of local suppliers who manufacture the fundamental components of its products within the country. This strategic move seeks to diversify its supply chain away from the traditional reliance on China.

Apple is seeking more partners in India to enhance the value of its products, particularly iPhones and AirPods, which will soon be assembled in the country, as reported by multiple sources. This strategic move aligns with Cupertino’s preparations for the launch of the iPhone 16 series. Apple has gradually shifted its supply chain away from China and diversified its manufacturing operations to markets like India. Consequently, it is actively seeking non-Chinese partners to boost production of various components in India.

Specifically, Apple is engaged in discussions with Flextronics, a US-based company, Jabil, and Aequs, an Indian company, to increase production of power equipment and plastic enclosures for the AirPods. Flextronics will produce power equipment, while Jabil will manufacture plastic enclosures. Additionally, Aequs will supply non-iPhone enclosures.

Furthermore, Apple’s international vendors are collaborating with the Tata Group, including its subsidiaries like Tata Electronics, to explore the possibility of manufacturing capital equipment. Apple is also considering joint ventures with Indian partners to expand its production capabilities, including the manufacturing of displays and camera modules. Notably, for camera modules, Apple has been in discussions with Tata’s subsidiary Titan and the Murugappa group.

In 2022, Apple solidified a significant partnership with the Japanese lithium-ion phone cell battery maker, TDK. This partnership marked TDK’s first as an anchor client in India. TDK subsequently established a battery manufacturing facility in Gurugram, a bustling suburb of New Delhi, India’s capital.

In a recent development, the Motherson group, a prominent Indian conglomerate, has reportedly been engaged in discussions to join Apple’s supply chain through a joint venture with the Hong Kong-based BIEL Crystal Manufactory.

Notably, the iPhone 15 made history as the first iPhone to be entirely manufactured in India from the time of its launch. This achievement enabled Apple to simultaneously launch the iPhone 15 models in India, a first for the company, alongside the US market. Subsequently, Apple also commenced manufacturing the iPhone 15 Plus in India. However, this year, Apple will also be introducing the iPhone 16 Pro and iPhone 16 Pro Max in India.

Furthermore, the recent budget announcement provided Apple with an advantage by reducing customs duties. This favorable change allowed Apple to lower the prices of certain devices, including the iPhone 15 models, in India. Consequently, many anticipate that the iPhone 16 models will be launched at a lower price compared to the iPhone 15.