India’s Apple suppliers now export electronic components to Vietnam and China
India’s electronics industry marks a turning point in its manufacturing capability and exporting product portfolio. The sector for the first time started exporting electronic parts required to manufacture Apple products like AirPods, MacBooks, iPhones, and Pencils to Vietnam and China. India used to import these electronic parts in the past but now it is exporting them. This success is not only the achievement of India’s electronics industry but also the successful efforts of the US in diversifying its supply chain.
Expansion plan of Apple’s product portfolio
In recent times, Apple suppliers like Tata Electronics, Motherson Group, Aequs, and Jabil are manufacturing mechanical parts which consist of enclosures for all Apple products except iPads. These parts are shipped to the assembly locations in order to make final products.
Apple plans to expand the value added in India and also wants to create a strong local manufacturing system. In order to achieve this, it is planning to expand their product portfolio beyond just iPhones and major electronic parts. It is one of the primary reasons for Apple manufacturing mechanical parts, especially enclosures for their final products in India.
Impact on India’s electronics industry
Plans of expansion of product portfolio and start of export of electronics components of Apple has marked a significant milestone in the development of the industry. In the last 20 years, India used to be a major importer of components and sub-assemblies from Vietnam and China. It is a major success for the electronics component ecosystem in the industry.
The steps taken by Apple and its suppliers in India will aid in development of the electronics component segment in the country. It will lead India to achieve an important position in the global electronics industry. The country is anticipated to achieve the target of component exports of 35 to 40 billion dollars by the year 2030.
To achieve this goal, the government of India is also planning to provide production-linked incentive of higher than 3 billion dollars for the component making in India.
In present times, India is progressing as an alternative manufacturing hub for Apple.
Apple’s efforts to expand its suppliers in India
Manufacturing mechanics components is a complex and high skill job as it requires advanced machines and complex engineering. To manufacture these components, Apple is onboarding top Indian manufacturing companies and also establishing its global suppliers’ facilities in India.
In the last few years, Apple brought its two global suppliers in India which includes Jabil and Aequs. Jabil’s manufacturing facility is located in Pune and it manufactures mechanics components for AirPods. Aequs is located in Karnataka and manufactures mechanics for MacBooks. Apart from this, Aequs and Jabil now build mechanics for Apple Watch and Apple Pencil, respectively, Additionally, Motherson Group also joined Apple’s supplier base. It manufactures enclosures for iPhones.
Three years ago, Apple onboarded Tata Electronics as its first supplier in India. Back then, Tata Electronics used to make components for Indian manufacturing facilities building iPhones. Today, the company not only builds components to satisfy local demand but also successfully export to China.
Some of the other suppliers of Apple in India are Salcomp who manufactures power packs, magnetics, and coils. There is also Foxlink and Sunwoda who make cables and battery packs, respectively, for Apple.
Outlook of electronics industry
Currently, Apple only builds iPhones in India. It is now planning to expand its product range of manufacturing to AirPods as well.
It marks India’s progress in the electronics manufacturing ecosystem. Initiatives taken under ‘Make in India’ will further aid India in achieving a high-tech component manufacturing ecosystem in the country.
Apple has successfully shipped iPhones worth higher than INR 1 lakh crore from India. Currently, Apple is in discussion with Bharat Forge to add it in its supply chain.
The image added is for representation purposes only
