iPhone components could soon be made in India
What's the story
Apple is said to be in talks with Bharat Forge, a leading Indian manufacturing giant, to possibly add it as a supplier of iPhone components.
The move comes after Apple's recent tie-ups with other big Indian companies like Tata Group and Motherson.
The development comes as part of Apple's larger strategy to move its production base out of China and add more local value through Indian suppliers like Foxconn and Tata.
Supplier role
Bharat Forge's potential role in Apple's supply chain
If the talks materialize, Bharat Forge could emerge as a major player in Apple's supply chain.
The company would be tasked with manufacturing a range of components, including mechanics for the US tech giant.
This potential partnership would join a long list of Indian players working with Apple, including Tata Group, Motherson Group, and Aequs.
Production shift
Apple's expanding Indian supplier ecosystem
Over the last two years, Apple has been working aggressively to expand its Indian supplier ecosystem. This is part of a broader strategy to increase local value addition as it shifts more of its manufacturing base outside China.
The company's existing suppliers in India include three iPhone assembly plants, the largest one operated by Foxconn in Tamil Nadu and two others by Tata Group units in Tamil Nadu and Karnataka.
Company profile
Bharat Forge's industry presence and potential partnership
Bharat Forge is one of the largest Indian manufacturing companies with close to 5,000 employees. The company works in a range of sectors, including forging, automotives, energy, construction and mining.
It is headed by Baba Kalyani and has several subsidiaries. Its partnership with Apple could further bolster the tech giant's supplier base in India.
Supplier diversity
Apple's diverse supplier base in India
Apple's diverse supplier base in India also includes companies from China, Japan, Taiwan, and other countries that have set up manufacturing units here.
The list of vendors includes Sunwoda (battery packs), Foxlink (cables), and Aequs (enclosures).
Salcomp, one of Apple's earliest component suppliers, is also expanding its operations beyond coils, power packs, and magnetics.
Enclosure focus
Apple's focus on iPhone enclosures and local suppliers
An industry expert told The Economic Times that Apple is especially keen on iPhone enclosures. More local suppliers are expected to be absorbed into this process in the coming year.
This includes the Tata unit in Hosur, Tamil Nadu. Since starting manufacturing in India under the production linked incentive (PLI) scheme in 2020, Apple has been able to grow its local value addition from 5-8% to up to a fifth for different models.