From import to export—India now ships Apple components to China
28 Feb 2025

In a major development, India has begun exporting electronic components for Apple products to China and Vietnam. The move comes as part of the US tech giant's efforts to diversify its supply chain.

Key suppliers including Motherson Group, Jabil, Aequs, and Tata Electronics are making these components locally.

The initiative is expected to give a major boost to the local electronics manufacturing sector in India.

Apple's diversification strategy includes Indian suppliers
Strategy shift

The parts manufactured in India will go into a variety of Apple products such as MacBooks, AirPods, Watch, Pencil, and iPhones.

"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," an insider told The Economic Times.

This major development indicates a new phase in Apple's supply chain diversification strategy.

India's role in global electronics manufacturing
Industry impact

Apple's move to source components from India is likely to boost growth in the country's electronics industry.

For the last 20 years, India has mostly relied on China and Vietnam for importing components and sub-assemblies.

But now, with a growing component ecosystem, India is set to emerge as a key player in global electronics manufacturing.

This could also help it achieve its component exports target of $35-40 billion by 2030.

Government support and complex manufacturing
Policy push

The Indian government is also planning a production-linked incentive (PLI) scheme worth over $3 billion for component manufacturing.

The components, called mechanics, are essential for holding together the motherboard, CPU, and other sub-assemblies in electronic products. Their manufacturing requires intricate engineering and high-tech machinery.

"India is rising as a manufacturing alternative for Apple, alongside China and Vietnam," said Neil Shah from Counterpoint Research.

Apple collaborates with local manufacturers
Partnerships

To manufacture these parts, Apple is collaborating with leading local manufacturers and pushing its global suppliers to set up shop in India.

Over the last year, two more suppliers have come on board Apple's initiative: Jabil of Michigan, which manufactures mechanics for AirPods at its Pune plant; and Aequs of Hubbali in Karnataka, which makes mechanics for MacBooks.

Motherson Group also recently started making enclosures for iPhones.

Manufacturing expansion in India
Growth trajectory

Apple started sourcing mechanics locally three years ago when it enlisted Tata Electronics to supply components for iPhones made in India.

Since then, Tata Electronics has scaled its capacity to cater to local demand as well as exports to China.

Jabil and Aequs have also expanded their product range by adding mechanics for the Apple Pencil and Watch, respectively.

Currently, only iPhones are made in India but production of AirPods is slated to start soon.