Apple will pick up its Indian supplier in six months
BBN Bureau
Mumbai: Apple, a major global player in smart phone, is looking to India for sourcing some critical parts. A media report says that US electronic giant has been holding talks with the Murugappa Group and Tata Group’s Titan for iPhone camera modules.
At present, no Indian company is in the supply list of Apple, though iPhones are assembled in India. Joining hands with either Murugappa Group or Titan will not only further improve Apple’s relations with Indian Inc but will make iPhones assembling here more cost-effective, adds the report.
Quoting a source, the report says that Apple will select its Indian supplier in a time frame of five to six months.
The camera module stands as a crucial component, currently presenting one of the “biggest challenges for Apple in India”, the report stated. Titan specialises in the precision manufacturing of components for its watches and jewellery. The Murugappa Group has extensive interests spanning engineering, financial services, and chemicals, the reports adds.
According to the report , Apple aims to shift a minimum of half of its supply chain to India and intends to enhance local value addition from suppliers by nearly 50 per cent within the next three years.
According to the report, image sensor chips within a camera module are the most costly component of a smartphone as well as of its display. “For image sensors, Apple depends largely on Sony in Japan, Samsung in Korea and Omnivision in China. These image sensors are specialised semiconductors, and it is very costly for new players to enter this market,” a source said.
Apple was targeting production of nearly Rs 1 trillion worth of iPhones in India by March end (Q4FY24) or the first quarter of FY25, having increased capacity at its manufacturing partners. Around 70 per cent of iPhones produced in India are exported, which is only set to increase.
