Amid production expansion planned by iPhone assemblers in India, Apple is reportedly looking for more local component suppliers to meet its target of diversification away from China.
Citing sources, Mint reported that Apple is in discussions with multiple suppliers involved in component manufacturing across automotive, aerospace, and consumer electronics sectors, encompassing suppliers at tier 2 and tier 3 levels. The report suggests that Apple aims to bolster its production and sourcing operations in India significantly.
The report came amid a series of recent rumors by Indian and global news outlets, including WSJ, Bloomberg, the Economic Times, and the Financial Times, saying that Apple and its suppliers have embarked on massive investment plans to expand production capacities for iPhones and components in India. According to the reports, because Apple found it difficult for China-based suppliers to invest in India, the tech giant is looking for non-Chinese alternatives for sourcing components in the South Asian country.
Over the past weeks, Foxconn, the primary iPhone assembler, announced separate investments in its Indian subsidiaries, including a US$1.6 billion investment for iPhone manufacturing and another investment worth US$50 million for Android smartphone manufacturing.
WSJ reported that Foxconn's new plant in Karnataka is expected to begin operation in April 2024, making 20 million handsets annually, primarily iPhones. The report said Foxconn is planning another facility in India.
According to Business Standard, Apple suppliers, including Foxconn, Pegatron, and Wistron, produced made-in-India iPhones worth INR600 billion in the first seven months of fiscal 2024 (April 2023 to March 2024), accounting for 81% of the combined target of INR740 billion required for them to be eligible for the Production Linked Incentive (PLI) scheme for large-scale electronics manufacturing for the period.
