Apple, in a significant strategic shift, is scouting for new suppliers from India, Japan, and South Korea to circumvent delays in getting approvals for imports from its existing Chinese suppliers. These crucial imports include batteries, camera lenses, chargers, and more, all vital for assembling iPhones and iPads in India.
What Happened? According to an ET report, initially, 17 Chinese firms providing parts for Apple sought permission to set up units in India, with initial nods to fourteen. But bureaucratic hurdles, national security concerns, and environmental clearances have stalled proceedings for some, while others have lost interest in establishing Indian operations.
This impasse led to firms like Luxshare-ICT shifting their focus to Vietnam. A senior government official clarified that they issued no outright rejections, highlighting the need for careful consideration in such approvals.
Apple's response? It’s engaging with suppliers from India and other Asian countries to create a ‘just-in-time’ supply chain, expediting local production. This move reflects Apple's broader strategy of diversifying its manufacturing base beyond China.
Tata Electronics, Apple’s only Indian supplier, is poised to expand its iPhone casing facility. Major Apple partners like Foxconn, Pegatron, and Wistron have a significant presence in India.
Apple’s quest for non-Chinese suppliers, especially for intricate components like camera lenses, aligns with its global strategy but could pose challenges due to the high technical expertise required. Nonetheless, these efforts mark a pivotal step in Apple’s ongoing journey to diversify and strengthen its global supply chain.
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