Apple says it is in talks with these Indian companies to build its supply chain
According to a report, Apple is in talks with several Indian companies as part of the iPhone maker’s efforts to build its own supply chain ecosystem in the country. Apple was heavily dependent on Chinese suppliers until 2020, but the company has since tried to shift production to other regions, including India and Vietnam. The company is reportedly in talks with companies in India to explore the possibility of setting up joint ventures with foreign companies to produce components in India.
Apple is looking to Indian companies to buy components due to delayed import approvals
According to a Moneycontrol report Citing a source familiar with the company’s plans, Apple has held talks with more than 40 Indian electronics manufacturing (EMS) companies, such as Dixon Tech and Amber Enterprises, as well as international EMS companies. Other companies approached by the company reportedly include HCLTech, Wipro and Motherson Group.
The source also told the publication that the reason for these discussions was that Apple’s Chinese suppliers were reluctant to invest in the country “due to existing cases against other Chinese companies” and visa issues.
Meanwhile, the report also states that the reason Apple wants to source more components from companies in India is that government approvals for the import of components such as batteries, chargers and other components from Chinese suppliers are currently being delayed.
However, manufacturing components in India is expected to be a challenging affair, and Apple is reportedly in talks with the Indian companies to set up joint ventures with companies from countries like Taiwan, Japan, China and South Korea to produce some produce components in the country. .
The company recently recorded its highest-ever quarterly shipments in India, with a whopping 4 million units shipped. Meanwhile, its market share rose to 8.6 percent, up from 5.7 percent in the third quarter of 2023. Apple’s best-selling phones in the previous quarter were the iPhone 15 and iPhone 13, which were launched in 2023 and 2021, respectively.
A recent Bloomberg report shows that Apple exported Indian-made iPhone models worth nearly $6 billion (approximately Rs. 50,500 crore) in a period of six months, and the company is expected to cross the $10 billion mark (approximately Rs.84,100 crore). Apple relies on Foxconn, Pegatron and Tata Electronics to produce iPhone models in India. Tata recently signed a deal to acquire Pegatron’s manufacturing plant in Tamil Nadu.
