Apple is currently in talks with Chennai-based Murugappa Group and Tata Group‘s Titan Company to assemble and produce sub-components for iPhone camera modules.

What Happened: According to a report by the Economic Times, despite assembling several iPhone models in India, Apple has not yet sourced camera modules locally. “Partnering either with Titan or the Murugappa Group could address this issue,” a close source tells ET.

Camera modules represent “one of the biggest challenges for Apple in India,” the report notes. Titan specializes in precision manufacturing for its watches and jewellery, while the Murugappa Group operates broadly across engineering, financial services, and chemicals.

Apple expects to finalize the decision on which partner to choose within five to six months.

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Why it matters: Apple plans to relocate at least half of its supply chain to India and aims to boost local sourcing from suppliers by nearly 50% within the next three years.

A source informs ET that starting with module assembly is a solid foundation for Apple to attract different sub-assembly manufacturers and establish the complete local value chain — from image sensors to lenses and the entire camera module.

Image sensor chips, crucial for camera modules, are among the most expensive components in smartphones. For image sensors, Apple largely relies on Sony in Japan, Samsung in Korea, and Omnivision in China. These image sensors are specialized semiconductors, making it very costly for new entrants to penetrate this market.

Apple aims to produce nearly ₹1 trillion worth of iPhones in India by the end of March 2024 (Q4FY24) or the first quarter of FY25, planning to export about 70% of these iPhones.

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