Apple Said to Be in Discussions With Several Indian Firms to Replace Chinese Suppliers

Apple is holding discussions with several Indian companies as part of the iPhone maker’s efforts to build its own supply chain ecosystem in the country, according to a report. Apple heavily relied on Chinese suppliers until 2020, but the firm has since attempted to move production to other regions, including India and Vietnam. The company is reportedly in talks with firms in India to explore the possibility of setting up joint ventures with foreign firms to product components in India.

Apple Looks to Indian Firms to Source Components Due to Delayed Import Approvals

According to a Moneycontrol report citing a source familiar with the company’s plans, Apple has held discussions with over 40 Indian electronics manufacturing services (EMS) companies such as Dixon Tech and Amber Enterprises, as well as with international EMS firms. Other firms approached by the company reportedly include HCLTech, Wipro, and Motherson Group.

The source also told the publication that the reason for these discussions was that Apple’s Chinese suppliers were reluctant to invest in the country “due to existing cases against other Chinese companies” and visa issues.

Meanwhile, the report also states that the reason Apple is looking to source more components from firms in India is because government approvals for imports of components like batteries, chargers and other components from Chinese suppliers are currently delayed.

However, producing components in India is expected to be a challenging affair, and Apple is reportedly in talks with the Indian companies to set up joint ventures with firms from countries like Taiwan, Japan, China, and South Korea to manufacture some components in the country.

The company recently recorded its highest-ever quarterly shipments in India, with as many as 4 million units shipped. Meanwhile, its market share rose to 8.6 percent, up from 5.7 percent in Q3 2023. Apple’s bestselling phones in the previous quarter were the iPhone 15 and iPhone 13, which were launched in 2023 and 2021, respectively.

A recent Bloomberg report reveals that Apple exported iPhone models produced in India worth nearly $6 billion (roughly Rs. 50,500 crore) in a six-month period, and the company is expected to cross the $10 billion (roughly Rs. 84,100 crore) mark. Apple relies on Foxconn, Pegatron, and Tata Electronics to produce iPhone models in India — Tata recently sealed a deal to acquire Pegatron’s plant in Tamil Nadu.