Despite the violence at the Wistron factory in Bengaluru apparently hurting Apple’s ambitious ‘Make In India’ plans, the US tech giant is in no mood to make changes in manufacturing plans of Apple products like iPads, MacBooks and other devices in India.
The company is reportedly planning to locally source the components required for the manufacturing of iPhones as it brings in more partners to start the domestic production of its products in the country.
Earlier, Apple had said that it is going to manufacture its iPhone 12 series in India and the ‘Made in India’ iPhone 12 models would be ready by mid-2021. Local production for MacBooks, iPads and other devices will back Apple’s native ecommerce play in India, where stocks are currently low for most devices. It would also help Apple upsell its cohesive ecosystem to Indian consumers in an easier manner.
“Apple is looking to increase local value addition to its iPhones in India. They are currently exploring how more of its global suppliers can come to India,” an unnamed source told ET.
The company could also be potentially looking for an Indian manufacturing partner for mobile components. Apple had already given the contract to Taiwanese manufacturer Wistron for the manufacturing of the new iPhones in its Narasapura plant near Bengaluru which was one of the five international companies whose applications were approved under the Indian government’s production-linked Incentive (PLI) scheme for large-scale electronics manufacturing in the country. The names of other approved companies include Samsung, Foxconn Hon Hai, Rising Star and Pegatron.
Apart from Wistron, Foxconn and Pegatron are the other contract manufacturers for Apple in India. Some of Apple’s manufacturing partners are also looking to set up India operations., including Avary Holding (Shenzhen) for printed circuit boards (PCBs), BYD Electronics for iPads, Luxshare Precision Industry for AirPods, Quanta Computer for MacBooks and AT&S for printed circuit boards.
Currently, companies like Shenzhen YUTO Packaging Technology Co Ltd, Sunwoda Electronic Co Ltd, CCL Design (Suzhou) Co Ltd, SABIC Innovative Plastics and Salcomp Plc are already working to source components in India and Cheng Uei Precision Industry Co, a Taiwan-based cable and connector maker is likely to start mass production for Apple next year from its new plant in India.
Apple could possibly be looking to deepen its manufacturing process in India by roping in more partners for sub-assembly, testing and packaging besides other components makers for local sourcing, the source added.
The idea to increase local manufacturing will ensure duty benefits and much-streamlined operations for Apple in the country.