Name: Apple ramping up local sourcing of iPhone parts
Brand: indiatimes.com
SKU: indiatimes-com-373
Availability: OnlineOnly

critic

Apple ramping up local sourcing of iPhone parts

preview

Search+›››› Apple ramping up local sourcing of iPhone partsBy , Last Updated: Dec 24, 2020, 08:01 AM ISTSynopsisNew Delhi: is deepening its manufacturing capabilities in India by increasing the of components for iPhones besides bringing in more of its partners to kick off domestic production of iPads, AirPods and MacBooks, people familiar with the matter told ET. They added that there has been no change in the company’s plans despite the violence at contract maker Wistron’s plant in Karnataka.“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,” one person said.A second person said the company is also exploring possible business with Indian companies that are either new or already working in the handset component space.A third person said some of Apple’s other manufacturing partners are also finalising their plans to set up India operations. These include Avary Holding (Shenzhen) for flexible printed circuit boards (PCBs), BYD Electronics for iPads, Luxshare Precision Industry for AirPods, Quanta Computer for MacBooks and AT&amp;S for PCBs.‘Key Market for Exports’“Many of them have registered companies in India, while others are in the process. There are some smaller partners as well who may enter India starting next year,” a third person said.Local sourcing has to be a pivotal part of Apple’s strategy for the next few years, said IDC research director Navkendar Singh. “It is clear that India is an important market for Apple and it must use all government initiatives and policies to make India as its next big manufacturing and exports hub,” he said.He added that display panels, batteries, outer casings and other parts could be among initial focus areas for Apple, which is in the process of shifting some of its manufacturing to India from other locations such as China.PLI schemeGlobal suppliers to Apple contract manufacturers Foxconn, Wistron and Pegatron are already in touch with the government to participate in the second round of applications under the production-linked incentive (PLI) scheme for electronic component makers, ET reported recently. That involves incentives worth ₹2,000 crore over five years.Apple India didn’t respond to queries.In India, the company already works with Shenzhen YUTO Packaging Technology Co Ltd, Sunwoda Electronic Co Ltd, CCL Design (Suzhou) Co Ltd, SABIC Innovative Plastics and Salcomp Plc to source various components and for packaging.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. The affiliate of Taiwan-based Foxlink hasn’t yet been listed as a supplier in India by Apple.Apple could rope in more partners for sub assembly, testing and packaging besides other components makers for local sourcing, the first person cited said. The second person added that besides its own global suppliers setting up shop in the country, the company is also exploring possible business with Indian companies that are either new or already working in the handset component space.Tata Group a Potential PartnerThe Tata Group, for instance, may emerge as a key Apple partner in India with plans for an electronics component factory in Tamil Nadu that will manufacture iPhone casings, among other components, ET recently reported. Group company Tata Electronics may invest ₹7,000 crore under the government’s Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, which has a budget outlay of ₹3,285 crore spread over a period of eight years.“We believe that the local value addition will be a phased process... as component suppliers set up their factories in India. Currently, local sourcing for Apple is not high,” said Prachir Singh, senior research analyst at Counterpoint Research. He added that some of the components locally sourced by Apple are batteries and chargers.The second person quoted above said that India’s component manufacturing landscape is fast improving with various suppliers starting their operations in the country.“Most of these are suppliers of Oppo, Xiaomi and Vivo,” he said. “Some Indian players are also joining the ecosystem.”Expansion DriveRecently, local electronics parts maker Sahasra earmarked an investment of ₹350 crore over the next four years for assembling mobile phone memory chipsets, laptop hard drives and motherboards in India. It is aiming to scale up to 100 million integrated circuit (IC) units annually for memory, and is in talks with players like Foxconn, Wistron, Lava, Dixon, Micromax and Reliance Jio for supplying memory chipsets.Apple has been expanding its manufacturing operations in India aggressively. The three key contract manufacturers — Foxconn, Wistron, and Pegatron — are all part of the PLI programme. However, Wistron and Pegatron are on probation over labour practice lapses.Experience Your Economic Times Newspaper, The Digital Way!&nbsp;»(Catch all the , Events and Updates on .)Download to get Daily Market Updates &amp; Live Business News.Subscribe to XContinue reading with one of these options:Limited AccessFreeLogin to get access to some exclusive stories &amp; personalised newslettersLogin NowUnlimited AccessStarting @ Rs120/monthGet access to exclusive stories, expert opinions &amp; in-depth stock reportsSubscribe NowTo read full story, subscribe to ET Prime₹34 per weekBilled annually at₹2499Already a Member? Super Saver Sale - Flat 30% OffOn ET Prime MembershipAlready a Member? Rs 49 for 1st monthThen Rs. 1,749 per yearValid only with UPI, Credit &amp; Debit Cards Autopay---Subscribe Now(Credit card mandatory)You can cancel your subscription anytime---Subscribe Now(Pay Using Netbanking/UPI/Debit Card)Netbanking, Credit &amp; Debit CardSubscribe with Google₹399MonthlyPLANBilled Amount ₹399No Trial Period₹399₹208(Save 49%)YearlyPLANBilled Amount ₹2,499₹399₹150(Save 63%)2-YearPLANBilled Amount ₹3,599$13.99(Save 40.0%)$33.99Get ET Prime for just ₹2499 ₹1749/yrSpecial OfferGet Flat 20% OffON ET PRIME MEMBERSHIPStories you might be interested inSUBMIT

Search+›››› Apple ramping up local sourcing of iPhone partsBy , Last Updated: Dec 24, 2020, 08:01 AM ISTSynopsisNew Delhi: is deepening its manufacturing capabilities in India by increasing the of components for iPhones besides bringing in more of its partners to kick off domestic production of iPads, AirPods and MacBooks, people familiar with the matter told ET. They added that there has been no change in the company’s plans despite the violence at contract maker Wistron’s plant in Karnataka.“Apple is looking to increase local value addition to its iPhones in India. They are currently...

public

Danish Khan

News. Views. Analysis. Conversations. India’s No.1 digital news destination, world’s largest-selling English newspaper - A Times Internet Limited Product

Apple ramping up local sourcing of iPhone parts

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS