Apple will broaden the spectrum of its domestic component manufacturing in India to diversify manufacturing capacities
Apple is planning to increase the scale of manufacturing of its domestic components in India, for which the company has shared the details with top level officials in the finance ministry. This has come at a time when Apple is eyeing India for it to be its manufacturing hub, and diversify manufacturing capacities beyond China.
According to an exclusive report by Moneycontrol, the iPhone maker aims to diversify its supply chains beyond China by this move. As majority of its suppliers are based out of China, the company plans to diversify also due to geopolitical scenario and government policies.
At present, component suppliers at Apple’s service include Foxlink, Flex, Salcomp. Avary, Sunwoda and Jabil.
After starting manufacturing in India in 2017, Apple has worked with suppliers to assemble iPhone models and produce a growing number of components. It opened its first store in Mumbai on April 18, 2023, and second one in New Delhi on April 20.
According to a report by Counterpoint Research, Apple currently is the leader in India’s premium smartphone market and also in terms of shipment value in the last quarter of FY22. In FY23, it dealt iPhone exports of about $5 billion-$5.5 billion from India. The figure, based on estimates from industry sources, was half of the country’s mobile phone exports in the year.
Despite such robust progression, the company’s overall market share in India’s smartphone market is still around 5 percent.
Manufacturing of smartphones were given a boost in India by government’s production linked incentive scheme.