Apple Explores Indian Partnerships for iPhone Component Production

Apple is increasingly shifting its iPhone production to India, with 14% of its overall shipments now originating from the country. In addition to assembling iPhones in the Indian factories of Tata Electronics, Foxconn, and Pegatron, the American technology giant is now looking to source components for its smartphones from local manufacturers. According to reports, Apple is in discussions with the Murugappa Group and Titan, the Tata-owned watchmaker, to produce iPhone camera modules.

This move is part of Apple's strategy to deepen its supply chain in India for the iPhone. The company is likely to choose either Titan or the Murugappa Group as its supplier for the iPhone camera module, as it currently lacks a dedicated supplier for this component in the country. This initial step is expected to serve as a basis for attracting more sub-assembly manufacturers to the Indian market. Apple plans to finalise the contractor for the project within the next 5-6 months.

Both Titan and Murugappa have extensive experience in high-precision manufacturing, making them strong contenders for the partnership. In 2022, the Murugappa Group acquired Noida-based Moshine Electronics, which specialises in the production of camera modules. This acquisition positions the Murugappa Group as a potential end-to-end player in Apple's Indian supply chain. Similarly, Titan Engineering and Automation, a subsidiary of the Tata Group, has a proven track record in high-precision component manufacturing.

The Murugappa Group also holds an existing qualification for government incentives to set up a semiconductor chip assembly plant, while Tata is currently constructing an $11 billion chip fabrication unit in Gujarat. These developments further strengthen the case for Apple's partnership with Indian manufacturers.

Apple's decision to diversify its supply chain away from China and Chinese suppliers is driven by a desire to reduce its dependence on a single country. Image sensors, which are typically the most expensive part of a camera module, are a key focus area for the company's diversification efforts.

This is not the first time Apple has engaged with Indian contract manufacturers. The company has previously held discussions with the likes of Aequs Group and Dixon Technologies. Apple aims to manufacture 25% of all iPhones in India by 2025 and is rapidly gaining pace in its efforts to establish a robust local supply chain.