Apple Taps Into 'Make in India' With Further Local Sourcing For iPhone Components

Apple reportedly looking for Indian suppliers to procure three essential iPhone components: mobile display assemblies, camera modules, and enclosures (mechanical parts).

This move is part of company's strategy to enhance the value of iPhones assembled within India.

Should the strategy prove successful, these three components are expected to collectively contribute to a 30-35 per cent increase in the added value of iPhones.

Foxconn, the leading electronics manufacturing service (EMS) provider and a major contractor for iPhone production in India, has shown interest in establishing an OLED display assembly line for mobile devices that would also supply to iPhones in India, Business Standard reported citing sources.

However, it remains uncertain whether this interest will culminate in a finalised agreement with Apple.

Furthermore, with regards to the camera module assembly, there is reportedly an effort to engage a domestic manufacturer, potentially with support from international tech firms.

Alternately, companies from South Korea, Japan, or Taiwan may also be invited to manufacture in India.

According to the reports, discussions are currently underway with three to four potential candidates.

Earlier, Apple had reportedly engaged Sunny Opotech, a Chinese firm and one of its international suppliers, which had declared a $300 million investment to establish a mobile phone camera production plant in Tirupati, Andhra Pradesh.

However, due to rising geopolitical strains between India and China, coupled with investment restrictions on Chinese firms, this initiative has been sidelined.

For enclosures, Apple has partnered with the Tata Group, which has initiated exports of these components to China.

However, to meet the increasing demand for iPhone enclosures, a significant increase in production will be necessary over the coming two and a half years.

The emphasis on these three area comes as iPhone’s contract manufacturers—Foxconn, Pegatron, and the Tatas (which recently acquired Wistron’s Indian plant for $125 million)—are poised to benefit from the production-linked incentive scheme. They have pledged to aggressively enhance the phones' value by up to 40 per cent by the conclusion of the scheme in 2025-26.