Apple, the tech titan, is actively scouting for local suppliers in India for three pivotal iPhone components: mobile displays, camera modules, and mechanical parts. This move is a calculated effort to bolster the indigenous value addition of iPhones assembled in the subcontinent.
What Happened: Insiders revealed to the Business Standard that if Apple’s strategy pans out, these components could amplify the value addition of iPhones by a significant 30-35%.
Foxconn, a global electronics manufacturing heavyweight and a primary assembler of iPhones in India, has shown interest in establishing an OLED display unit for mobiles, potentially catering to iPhones. However, the fruition of this partnership with Apple remains uncertain, with both Apple and Foxconn maintaining a tight-lipped stance.
Interestingly, for the camera module assembly, Apple is eyeing a collaboration with a domestic player, possibly leveraging global tech expertise. Options also include partnering with firms from South Korea, Japan, or Taiwan.
Previously, Apple had engaged with Chinese firm Sunny Opotech for camera manufacturing in Andhra Pradesh. However, due to geopolitical strains between India and China, this initiative has hit a pause.
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For the mechanical parts, Apple has partnered with the Tata Group, who have recently begun exporting these components to China. But to meet the surging demand for iPhone parts, a significant production boost is essential.
Why it matters? This intensified focus on local component sourcing aligns with the commitments of iPhone’s contract manufacturers, including Foxconn and the Tatas, to achieve a robust value addition of up to 40% by 2025-26 under India’s production-linked incentive scheme. If successful, Apple’s value addition could soar to nearly 50%, surpassing governmental expectations.
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