India has emerged as a key manufacturing hub for Apple, complementing operations in China and Vietnam. (AI image)

Make in India, ship to China! India has begun exporting electronic parts to China and Vietnam, marking a significant shift as these components are used in manufacturing various Apple products such as MacBooks, AirPods, Watch, Pencil and iPhones. This development represents a notable achievement in Apple’s strategy to diversify its supply chain.
Industry experts consider this development significant for India’s electronics sector, as it helps establish a robust component ecosystem. This marks a substantial change, considering India has traditionally imported components and sub-assemblies from China and Vietnam for the past two decades.
With the emergence of a domestic component ecosystem, India is positioning itself as a crucial electronics manufacturing hub. Industry analysts project that the country could reach its component exports target of $35-40 billion by 2030.
Several Apple suppliers, including Motherson Group, Jabil, Aequs and Tata Electronics, are now producing mechanical components and enclosures for Apple’s product range, except iPads. These components are shipped to assembly locations for final product manufacturing, sources told ET.

Apple diversifying in India

A source familiar with the matter said: “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 beginning of a manufacturing ecosystem in India, exporting to China and Vietnam for the first time. While it’s mainly components like enclosures and others now, the ‘Make in India’ initiative promises more advanced component manufacturing in the future,” Counterpoint’s Shah said.
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The growth in components manufacturing follows Apple’s milestone achievement in iPhone exports from India in 2024. As reported by ET last month, Apple’s iPhone exports from India surpassed Rs 1 lakh crore.
During the past two years, Apple has broadened its Indian supplier network to enhance local value addition, whilst diversifying its manufacturing operations beyond China. The company’s supplier base in India includes Sunwoda for battery packs, Foxlink for cables, and Salcomp producing coils, power packs and magnetics.