Apple is in advanced discussions with Indian firms Murugappa Group and Tata Group's Titan Company to collaborate on assembling iPhone camera modules, as reported by The Economic Times.
If these negotiations lead to a deal, it could potentially establish a broader network of Indian suppliers for Apple as it endeavors to diversify its operations away from China.
Despite several iPhone models being assembled in India, Apple currently lacks Indian suppliers for the camera modules used in its devices. Partnering with Titan or Murugappa Group could address this gap, according to sources cited in the report.
The decision-making process for Apple is estimated to take approximately five to six months before selecting a suitable partner.
The procurement of camera modules poses a significant challenge for Apple in India, as highlighted by industry insiders. Titan's expertise in precision manufacturing for watches and jewelry, along with Murugappa Group's century-long experience across various sectors, positions them as potential collaborators for Apple.
A recent report suggests that Apple aims to relocate at least half of its supply chain to India and increase local supplier contributions by nearly 50% within the next three years.
While there has been no official confirmation from Apple, Murugappa Group, or Titan regarding these discussions, industry experts speculate that Apple may initially focus on assembling camera modules in India. This approach could foster the involvement of more companies and bolster the local supply chain, ultimately leading to the production of various components locally.
Moreover, Apple's increasing reliance on local sources aligns with its strategy to strengthen its presence in India. Both Titan and Murugappa Group are recognized for their capabilities in manufacturing precise components, making them suitable partners for Apple's objectives.
Murugappa Group's acquisition of a majority stake in Noida-based camera module maker Moshine Electronics in 2022, coupled with Titan Engineering and Automation's expertise, further solidifies their potential contributions to Apple's supply chain in India.
Additionally, both Tata and Murugappa Group have expressed interest in government assistance to establish semiconductor manufacturing facilities in India, a critical aspect of Apple's supply chain localization efforts.
By leveraging local production, Apple aims to reduce costs and decrease reliance on Chinese suppliers. Through partnerships with established Indian companies and the support of government initiatives, Apple seeks to enhance its manufacturing capabilities in India, to produce a significant portion of iPhones locally for both domestic and international markets.
