Apple's India Surge: iPhone Vendors Expand Dramatically, China's Grip Loosens!

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

Apple's key vendors are substantially expanding their operations in India, a strategic move to diversify the iPhone maker's global supply chain and reduce reliance on China. This includes significant investments, production trials, and the commencement of exports from new Indian facilities.

Singapore-based TD Connex plans to invest Rs 200 crore to expand its Tamil Nadu plant, focusing on micro-precision components like CNC, plastic injection, and metal stamping for smartphone casings. Yuzhan Technology, a Foxconn subsidiary, has launched operations at its display module assembly unit in Tamil Nadu and is already exporting these modules for certain iPhone models.

These developments coincide with Apple achieving a record $10 billion in iPhone exports from India in the first six months of the fiscal year, marking a 75% increase year-on-year. Tarun Pathak from Counterpoint Research notes that with one in five iPhones now made in India, the expanded scale and diverse supplier base, supported by government policies, will help Apple exceed its 30% local sourcing mandate well before 2028. Mechanics and display components are expected to see the fastest localization, contributing significantly to domestic value addition. Indian firm Aequs has also been formally onboarded as a vendor, beginning trial production of MacBook enclosures and mechanical components for Apple Watches. Aequs Infra is also developing an electronics Special Economic Zone (SEZ) in Hubballi, Karnataka, with Aequs Ltd as its first tenant. Meanwhile, Foxconn is scaling up its headcount at its Karnataka facility, aiming to make it one of its largest globally.

Impact This news will significantly boost India's manufacturing sector, create numerous jobs, attract further foreign direct investment (FDI), and enhance India's position as a global electronics manufacturing hub. It also strengthens Apple's resilience by diversifying its production base. Rating: 9/10

Difficult Terms: * Supply Chain Diversification: Spreading production and sourcing across multiple countries or regions instead of relying on just one, to reduce risk and improve efficiency. * Vendors: Companies that supply parts or services to another company. * Production Trials: Testing manufacturing processes before full-scale production begins. * Micro Precision Components: Very small parts manufactured with extremely high accuracy. * CNC (Computer Numerical Control): A manufacturing process that uses computer-controlled machines to create precise parts from raw materials. * Plastic Injection Moulding: A manufacturing process where molten plastic is injected into a mold to create specific shapes. * Metal Stamping: A manufacturing process that shapes metal using a stamping press. * Liquid Silicone Rubber (LSR): A type of silicone rubber known for its high purity and durability, used in medical and electronic applications. * Housing: The outer casing or shell of an electronic device. * Display Module Assembly: The process of putting together the components that make up a screen for a device. * Bill of Materials (BoM): A comprehensive list of raw materials, components, and their quantities needed to manufacture a product. * Localisation: The process of adapting a product, service, or content to a specific country or region, in this context, manufacturing components within India. * Domestic Value Addition: The increase in the value of a product or service that occurs during its production process within a country. * Special Economic Zone (SEZ): An area within a country that is subject to different economic regulations than the rest of the country, often to encourage foreign investment and exports.