Apple Strengthens Ties with Indian Suppliers Amid Shifting Manufacturing Strategy

ENA Sectors 2024-11-21 17:05:12 New Delhi, Nov 21 (KNN) Apple is increasingly tapping into India's growing manufacturing ecosystem, expanding its partnerships with over 40 local suppliers. The move aims to source key components for its products—such as iPhones, MacBooks, iPads, and AirPods—locally, marking a significant shift in the companys supply chain strategy. Prominent Indian firms like Dixon Technologies, Amber Electronics, HCLTech, Wipro, and Motherson Group are now part of Apple's extensive network, reflecting the tech giant's push to reduce its dependence on Chinese suppliers. This initiative comes at a time when Apple faces challenges with its Chinese partners. Tensions between India and China, especially following the Galwan Valley conflict, have prompted some Chinese suppliers to hesitate in investing in India due to legal and tax hurdles. Notably, BYD, an iPad supplier, was blocked from operating in India, further driving Apple to diversify its manufacturing base. As a result, the company has turned to Indian firms and is exploring joint ventures with partners from China, Taiwan, and Japan to produce vital components like displays and camera modules. In addition, Apple is poised to benefit from India's electronics component incentive scheme, designed to encourage local firms to collaborate with global tech companies. This aligns with Apple's strategy of deepening local manufacturing, not just for iPhones but also for products like AirPods and iPads. Notably, AirPod wireless charging cases are already being produced in Pune, while Foxconn is set to start AirPods production in Telangana next year. The Indian government is also encouraging Apple to consider local iPad production after the company moved some operations to Vietnam last year. Apple's investments are bearing fruit, with a 23 per cent rise in net profit to Rs 2,745.7 crore in FY23-24. The companys revenue surged 36 per cent year-on-year, fueled by higher iPhone sales. As Apple expands its production in India, it aims to increase its global iPhone production volume in the country to 32 per cent by FY27, generating USD 34 billion in production value. With the government's support and a growing local ecosystem, India is quickly becoming a critical hub in Apples global manufacturing strategy. (KNN Bureau) 39995 https://knnindia.co.in/news/newsdetails/sectors/apple-strengthens-ties-with-indian-suppliers-amid-shifting-manufacturing-strategy 2024-11-21 17:05:12 knnindia.co.in Apple Strengthens Ties with Indian Suppliers Amid Shifting Manufacturing Strategy