> Apple suppliers Motherson Group, Jabil, Aequs and Tata Electronics are making mechanics, including enclosures, for all its products barring iPads in India and exporting them to the assembling locations to be utilised in making the final products, people aware of the details told ET.
> “In its bid to deepen domestic value addition and build a local ecosystem (in India), Apple is expanding domestic procurement beyond iPhone and its key components,” said one of the people. “That is why the company has initiated this massive initiative to make mechanics, particularly enclosures, for its products.”
> Apple’s move is going to be an enabler for the entire electronics industry in building a component ecosystem in India, experts said. They termed the development “important”, because for the last two decades, India has been a net importer of components and sub-assemblies from China and Vietnam.
> Now that a component ecosystem is starting to develop, making India a key player in electronics manufacturing, the country is likely to achieve its component exports target of $35-40 billion by 2030, industry watchers said.
> Mechanics are components that hold the motherboard, central processing unit and other sub-assemblies together in electronic products.
> The government is set to soon come out with a production-linked incentive scheme of more than $3 billion for component manufacturing to help achieve the target.
> “India is rising as a manufacturing alternative for Apple, alongside China and Vietnam. It’s not just about finished iPhones and other Apple products, India is now producing and exporting components to China and Vietnam for finishing these products as a source,” Neil Shah, vice president at technology researcher Counterpoint Research, told ET.
> During the past year, Apple has expanded its supplier network by including two new companies. Michigan-based Jabil commenced AirPods mechanics production at its Pune facility, whilst Aequs, situated in Hubbali, Karnataka, began manufacturing MacBook mechanics. The Motherson Group has recently joined Apple’s manufacturing network and has initiated iPhone enclosure production.
> Apple is establishing partnerships with prominent local manufacturers whilst encouraging its global suppliers to establish facilities in India.
> During the past two years, Apple has broadened its Indian supplier network to enhance local value addition, whilst diversifying its manufacturing operations beyond China. The company’s supplier base in India includes Sunwoda for battery packs, Foxlink for cables, and Salcomp producing coils, power packs and magnetics.
> Apple started sourcing the first set of mechanics locally when it enlisted Tata Electronics as its first supplier three years ago to provide the component for Indian factories producing iPhones. Since then, Tata Electronics has built capacity not just to cater to local demand, but also for exports to China.
> Apple currently makes only iPhones in India and is soon going to start production of AirPods here. The India-made components for other products are meant for shipment to China and Vietnam, where these devices are made, the people said.
> The expansion in components space follows Apple setting a record in exporting iPhones from India in 2024. Last month, ET reported that Apple exported more than Rs 1 lakh crore worth of iphones representing 15% of total production from India and is expected to grow 50% in the current financial year.
> However, after a roller-coaster ride for four years, Apple Inc. is at a crossroads in India as Trump’s reciprocal tariffs start ringing alarm bells. Apple will be closely monitoring the outcome of the US-India trade agreement.
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> Apple suppliers Motherson Group, Jabil, Aequs and Tata Electronics are making mechanics, including enclosures, for all its products barring iPads in India and exporting them to the assembling locations to be utilised in making the final products, people aware of the details told ET.
> “In its bid to deepen domestic value addition and build a local ecosystem (in India), Apple is expanding domestic procurement beyond iPhone and its key components,” said one of the people. “That is why the company has initiated this massive initiative to make mechanics, particularly enclosures, for its products.”
> Apple’s move is going to be an enabler for the entire electronics industry in building a component ecosystem in India, experts said. They termed the development “important”, because for the last two decades, India has been a net importer of components and sub-assemblies from China and Vietnam.
> Now that a component ecosystem is starting to develop, making India a key player in electronics manufacturing, the country is likely to achieve its component exports target of $35-40 billion by 2030, industry watchers said.
> Mechanics are components that hold the motherboard, central processing unit and other sub-assemblies together in electronic products.
> The government is set to soon come out with a production-linked incentive scheme of more than $3 billion for component manufacturing to help achieve the target.
> “India is rising as a manufacturing alternative for Apple, alongside China and Vietnam. It’s not just about finished iPhones and other Apple products, India is now producing and exporting components to China and Vietnam for finishing these products as a source,” Neil Shah, vice president at technology researcher Counterpoint Research, told ET.
> During the past year, Apple has expanded its supplier network by including two new companies. Michigan-based Jabil commenced AirPods mechanics production at its Pune facility, whilst Aequs, situated in Hubbali, Karnataka, began manufacturing MacBook mechanics. The Motherson Group has recently joined Apple’s manufacturing network and has initiated iPhone enclosure production.
> Apple is establishing partnerships with prominent local manufacturers whilst encouraging its global suppliers to establish facilities in India.
> During the past two years, Apple has broadened its Indian supplier network to enhance local value addition, whilst diversifying its manufacturing operations beyond China. The company’s supplier base in India includes Sunwoda for battery packs, Foxlink for cables, and Salcomp producing coils, power packs and magnetics.
> Apple started sourcing the first set of mechanics locally when it enlisted Tata Electronics as its first supplier three years ago to provide the component for Indian factories producing iPhones. Since then, Tata Electronics has built capacity not just to cater to local demand, but also for exports to China.
> Apple currently makes only iPhones in India and is soon going to start production of AirPods here. The India-made components for other products are meant for shipment to China and Vietnam, where these devices are made, the people said.
> The expansion in components space follows Apple setting a record in exporting iPhones from India in 2024. Last month, ET reported that Apple exported more than Rs 1 lakh crore worth of iphones representing 15% of total production from India and is expected to grow 50% in the current financial year.
> However, after a roller-coaster ride for four years, Apple Inc. is at a crossroads in India as Trump’s reciprocal tariffs start ringing alarm bells. Apple will be closely monitoring the outcome of the US-India trade agreement.
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