India to make AirPods for US and Europe, reports claim
Apple’s story in India continues to grow. Now it is widening the number of local Indian suppliers it works with even as it prepares to make more iPhones and soon also AirPods in the nation.
New suppliers include Wipro Enterprises and Lakshmi Machine Works, who the company is currently meeting with, with a view to bringing them into its component supply chain. Earlier this year it was reported in talks with India’s Bharat Forge, also for component supply.
Ramping out the partnerships
If talks succeed these will be the latest Indian firms to join Apple’s ecosystem, allegedly manufacturing parts and components for use elsewhere in its manufacturing chain. Other manufacturing partners include the mighty Tata Group, Motherson Group, Aequs, and Bharat Forge. These moves reflect Apples continued attempts to protect itself against the impact of supply chain challenges, including trade wars, on its supply chain.
Similar drives are motivating Foxconn, which is also setting up shop in India. Already the lead iPhone manufacturer in India, with an evolving city factory, now it is planning to commence AirPod production in its Hyderabad manufactory in April. These AirPods will be for export to the US and Europe and will become the second Apple product to be made in India, after iPhone.
Building the business
Within all of this, Apple is taking advantage of a range of government benefits to make these moves. India wants to tempt consumer electronics manufacturers to set up shop there and has a PLI scheme to attract them, which has been a big benefit for Apple. Dhruv Shekhar, senior associate at Koan Advisory Group, “Apple has been one of the lead participants in the PLI for Large-Scale Electronics Manufacturing, contributing to its success by driving significant exports and production volumes.”
“By scaling its production base, Apple not only mitigates risks associated with its dependence on China but also positions India as a key node in its global supply chain.”
Apple is also building its business in India.
“India set a December-quarter record during the quarter… The iPhone was the top-selling model in India for the quarter, and it’s the second-largest smartphone market in the world and the third largest for PCs and tablets. There’s a huge market, and we have a very modest share in these markets, so there’s lots of upside there,” said Kevan Parekh, Apple’s newly appointed CFO.
“India set a December-quarter record during the quarter,” said CEO Tim Cook recently. “The iPhone was the top-selling model in India for the quarter, and it’s the second-largest smartphone market in the world and the third largest for PCs and tablets. There’s a huge market, and we have a very modest share in these markets, so there’s lots of upside there.”
Apple has announced plans for new stores in New Delhi NCR, Mumbai, Bengaluru and Pune in addition to the two stores in New Delhi and Mumbai.
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