SUMMARY
If a deal is struck, it will mark a gradual shift in Apple's operations from China to India
Currently, Apple does not have any Indian suppliers for the critical camera module component in its smartphones, so partnering with either Titan or Murugappa Group would make it the first
Apple’s growth curve in India seems to have moved upward over the last few years. Apple makes 14% of its flagship devices in India, which translates to about 1 in 7 iPhones
Tech giant Apple is in advanced discussions with Murugappa Group and Tata Group’s Titan to assemble and possibly manufacture sub-components for iPhone camera modules.
If a deal is struck, it will mark a gradual shift in Apple’s operations from China to India, according to a report by The Economic Times.
Currently, Apple does not have any Indian suppliers for the critical camera module component in its smartphones, so partnering with either Titan or Murugappa Group would make it the first.
The report suggests that the decision on the tie up is expected to be finalised in the next five to six months. The camera module is one of the most sophisticated pieces of technology in the Apple iPhone. The non-Pro models come with a dual camera whereas the Pro models come with a sophisticated triple camera setup.
Inc42 has reached out to Tata for comments on the development. The story will be updated based on the response.
Both Titan and Murugappa groups have a strong background in high-precision manufacturing. In 2022, Murugappa Group bought a 76% stake in camera module maker Moshine Electronics.
Titan Company owns Titan Engineering and Automation, which caters to global customers across industries such as defence and aerospace.
Both Titan and Murugappa have qualified for government incentives to set up a semiconductor chip assembly unit in India.
This comes close on the heels of the Cupertino-based Apple reportedly moving at least half of its existing supply chain from China to India.
As per ET’s report, Apple’s ecosystem of component makers and suppliers could collectively employ around 5 Lakh people in India directly over the next three years, marking an over three-fold increase.
The tech giant also aims to ramp up the local value addition from its India suppliers in line with its plans to shift the vendor base outside China.
Apple’s growth curve in India seems to have moved upward over the last few years. According to media reports, Apple makes 14% of its flagship devices in India, which translates to about 1 in 7 iPhones. Taiwanese manufacturers Foxconn and Pegatron have majorly helped Apple in boosting its production output in India. While Foxconn assembled nearly 67% of the India-made iPhones, Pegatron Corp contributed about 17%.
Two big companies from Taiwan, Foxconn and Pegatron, have been a big help to Apple in making more iPhones in India. Foxconn made nearly 67% of the iPhones in India, while Pegatron made about 17%.
To boost its India production, Apple is also offering residential facilities to factory workers in line with its industrial housing models seen in China and Vietnam. Under this plan, the vendor ecosystem is likely to build over 78,000 units.
In February this year, CEO Tim Cook attributed the growth in India to iPhone sales and higher adoption of its products by enterprises. Apple accounted for 23% of smartphone revenue share in 2023, despite capturing just around 6.5% market share by volume.
In February, Apple India crossed the significant sales milestone of $8 Bn. This marks the second consecutive year in which the iPhone maker has experienced sales growth exceeding 40%. To expand more in the retail space, the smartphone giant came up with two official stores in the country last year.
Apple’s India business recorded revenue of INR 49.3K Cr in FY23, an increase of 48% from INR 33.3K Cr in the previous fiscal year.
