Turnaround from importer to exporter! India now shipping Apple product components to China & Vietnam

Make in India, ship to China! India has begun exporting digital elements to China and Vietnam, marking a major shift as these components are utilized in manufacturing varied Apple merchandise reminiscent of MacBooks, AirPods, Watch, Pencil and iPhones. This growth represents a notable achievement in Apple’s technique to diversify its provide chain.
Industry specialists think about this growth important for India’s electronics sector, because it helps set up a strong part ecosystem. This marks a considerable change, contemplating India has historically imported components and sub-assemblies from China and Vietnam for the previous 20 years.
With the emergence of a home part ecosystem, India is positioning itself as an important electronics manufacturing hub. Industry analysts venture that the nation might attain its part exports goal of $35-40 billion by 2030.
Several Apple suppliers, together with Motherson Group, Jabil, Aequs and Tata Electronics, are now producing mechanical components and enclosures for Apple’s product vary, besides iPads. These components are shipped to meeting places for last product manufacturing, sources informed ET.

Apple diversifying in India

A supply aware of the matter stated: “In its bid to deepen domestic value addition and build a local ecosystem (in India), Apple is expanding domestic procurement beyond iPhone and its key components. That is why the company has initiated this massive initiative to make mechanics, particularly enclosures, for its products.
The government plans to introduce a production-linked incentive scheme exceeding $3 billion to support component manufacturing and achieve the export target.
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Mechanical components, which secure the motherboard, central processing unit and other sub-assemblies in electronic devices, require sophisticated engineering and advanced machinery for manufacturing.
India has emerged as a key manufacturing hub for Apple, complementing operations in China and Vietnam. The country now produces and exports components to these nations for final assembly of Apple products, according to Neil Shah, vice president at technology researcher Counterpoint Research.
Apple is establishing partnerships with prominent local manufacturers whilst encouraging its global suppliers to establish facilities in India.
During the past year, Apple has expanded its supplier network by including two new companies. Michigan-based Jabil commenced AirPods mechanics production at its Pune facility, whilst Aequs, situated in Hubbali, Karnataka, began manufacturing MacBook mechanics. The Motherson Group has recently joined Apple’s manufacturing network and has initiated iPhone enclosure production.
The company’s local mechanics sourcing began when it appointed Tata Electronics as its inaugural supplier three years ago, manufacturing components for iPhone production facilities in India. Tata Electronics has since developed capabilities to serve both domestic requirements and exports to China.
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In a further expansion of the mechanics ecosystem for global supply, Jabil and Aequs have respectively incorporated mechanics production for Apple Pencil and Apple Watch.
Apple presently manufactures only iPhones in India, with plans to commence AirPods production shortly. Components manufactured in India for other products are destined for assembly facilities in China and Vietnam, according to informed sources.
“This is the start of a producing ecosystem in India, exporting to China and Vietnam for the primary time. While it is primarily components like enclosures and others now, the ‘Make in India’ initiative guarantees extra superior part manufacturing sooner or later,” Counterpoint’s Shah stated.
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The development in components manufacturing follows Apple’s milestone achievement in iPhone exports from India in 2024. As reported by ET final month, Apple’s iPhone exports from India surpassed Rs 1 lakh crore.
During the previous two years, Apple has broadened its Indian provider community to improve native worth addition, while diversifying its manufacturing operations past China. The firm’s provider base in India consists of Sunwoda for battery packs, Foxlink for cables, and Salcomp producing coils, energy packs and magnetics.