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Apple gets a boost in India as its Chinese suppliers receive clearance: Report

Apple gets a boost in India as its Chinese suppliers receive clearance: Report

AirPods and iPhone assembler Luxshare Precision Industry Co. and a unit of lensmaker Sunny Optical Technology Group Co. are among the companies gaining approval.

About 14 suppliers are receiving the green light to set up operations and sales in India after Apple named them as companies whose services it needs to increase its presence in India. About 14 suppliers are receiving the green light to set up operations and sales in India after Apple named them as companies whose services it needs to increase its presence in India.

Apple's tryst with India is set to deepen as over a dozen of the iPhone maker's Chinese suppliers have received initial clearance to expand and diversify their network in India.

AirPods and iPhone assembler Luxshare Precision Industry Co. and a unit of lensmaker Sunny Optical Technology Group Co. are among the companies gaining approval, according to a Bloomberg report.

The report also added that the clearances from key Indian ministries are a step toward full approval for expansion in India. However, the companies will still likely be required to find local Indian joint venture partners.

About 14 suppliers are receiving the green light to set up operations and sales in India after Apple named them as companies whose services it needs to increase its presence in India, the report added.

For years, China has been the first choice for assembling and manufacturing for the Cupertino-based smartphone company. After the onset of COVID-19 and China's zero covid policy, the plants saw multiple shutdowns that affected the global supply of iPhones.

After China, India has emerged as Apple's go-to choice. The iPhone maker has partnered with the Indian conglomerate Tata Group. The salt to software company-owned Infiniti Retail plans to open 100 stores across the country that will only sell Apple products.

This comes after Apple almost doubled the export of its India-made iPhones from the previous fiscal to over $2.5 billion from just April to December this year.

iPhone's two manufacturers, Foxconn Technology Group and Wistron Corp. have each shipped more than $1 billion of Apple’s marquee devices abroad in the first nine months of the fiscal year ending March 2023.

Apart from iPhone, Apple is reportedly planning to diversify its supply chain by shifting the production of iPads to India, it is looking to remove up to 30 per cent of its manufacturing out of China.

Published on: Jan 18, 2023, 3:00 PM IST
Posted by: Rachna Manojkumar Dhanrajani, Jan 18, 2023, 2:54 PM IST