Apple In Talks With Wipro Enterprises, Lakshmi Machine To Join India Supplier Network

Apple is reportedly in talks with Wipro Enterprises and Lakshmi Machine Works to join its growing network of Indian suppliers as the tech giant looks to strengthen its foothold in the world’s second largest smartphone market.

Citing sources, Economic Times reported that Wipro Enterprises and Lakshmi Machine would manufacture parts and components for Apple’s iPhones, Macbooks and other devices if the deal materialises.

Apple is expanding its Indian supplier ecosystem to boost local production and value addition. It already has similar partnerships with Tata Group, Motherson Group, Aequs, Foxlink and Sunwoda. 

In January, the iPhone maker also kicked off discussions with auto components major Bharat Forge to make Kalyani Group one of its vendors in the country.

With the Centre considering a new production linked incentive scheme for electronic components with an estimated outlay of INR 23,000 Cr, deepening its partnerships with local suppliers would allow Apple to bring down operational costs. 

Working with Indian suppliers also makes sense as it would enable Apple to tackle logistics challenges.

The latest development comes amid reports that Apple is assembling the newly launched iPhone 16e locally through its contract manufacturers in India for domestic users while exporting it to other countries. 

It already assembles older variants of its flagship devices such as iPhone 15, iPhone 14 and iPhone 13 in India.

India has emerged as a key market for Apple over the last decade or so. The company posted record quarterly sales in India during the October-December quarter, with iPhone emerging as the top-selling smartphone in the country during the period.

Amid rising sales of its devices in the country, Apple opened two retail stores in Delhi and Mumbai in 2023. It plans to open four more stores in Bengaluru, Pune, Delhi NCR, and Mumbai. 

India has also become a key manufacturing hub for the iPhone maker since it began shifting production away from China. Apple clocked iPhone exports worth $12.8 Bn (around INR 1.08 Lakh Cr) from India last year. This was an increase of 42% from 2023. 

In a further boost to its manufacturing capabilities in the country, Apple recently incorporated a new subsidiary, Apple Operations India for research, design, testing and providing support to third-party manufacturers.