Apple in talks with home-grown companies to produce iPhone gears

US-based technology giant Apple Inc is in talks with home-grown companies to manufacture capital equipment and machines required to make iPhones in India. These machines would then be supplied to the company’s iPhone vendors in the country as they expand capacity and launch new phones. 

The move is significant, as the import of critical capital equipment and machines — mostly made in China and essential for assembling the latest phones — is currently facing indefinite delays at ports. The effort to identify potential local suppliers would help reduce business risks. 

Confirming the development, a senior Ministry of Electronics and Information Technology (Meity) official said: “Apple Inc is looking at domestic companies which can manufacture the capital equipment and machines required for iPhone production. This is part of the company’s move to localise capital equipment requirements and is a key initiative.” 

A spokesperson for Apple Inc, however, did not respond to queries on the matter. 

There is a large requirement for critical capital equipment, especially as two new plants — one each of Foxconn and Tata Electronics — are preparing to begin iPhone production. According to analysts, they will add significant capacity once fully operational. Additionally, critical component manufacturers in India also need to expand their capacities to meet Apple’s growing requirements. 

A bigger challenge, however, lies in manufacturing the specialised machines required for the upcoming iPhone 17 series, including the more complex Pro and Pro Max models, expected to be launched globally between September and October this year. These phones require new equipment to be retrofitted — a process that can take several months. Any delay could seriously impact the assembly and launch of these models, which account for a substantial share of both domestic sales and exports. 

Key assemblers like Foxconn typically procure machines through Apple subsidiaries. For example, in July last year, an Indian subsidiary of Hon Hai acquired equipment worth $33 million from Apple Operations Ltd, according to a company filing in Taiwan.  

Vendors, including the Tata group (which has acquired Wistron and Pegatron), have already invested over ₹20,000 crore in India, according to analyst estimates. However, those familiar with the matter say there are challenges. 

 

Home-grown capital equipment manufacturers will need technology support either from Apple Inc or its suppliers to meet the Cupertino-headquartered company’s specifications. 

The potential, though, is significant — with or without the eventual impact of US tariffs. If Apple proceeds with its plan to export the entire US requirement of iPhones from India, the production value will need to rise from $22 billion in FY25 to around $40 billion in one to two years. 

However, if the US continues to impose a 25 per cent tariff on phone imports and India does not meet the full demand, production value will likely touch $27 billion by FY26 and rise to over $30-32 billion by FY27. 

LOCAL CALL

• Apple scouting for Indian companies to manufacture its capital equipment and machinery requirements
• Critical smartphone-making machines currently stuck or facing indefinite delays at Indian Customs
• The move aims to reduce dependence on countries like China
• New phone models require critical machines to be retrofitted on assembly lines
• Large market potential, as Apple has ambitious expansion plans regardless of clarity on US tariffs