Apple India’s iPhone Suppliers Cross 20% Domestic Value Addition

Apple’s manufacturing in India have achieved a significant milestone as contract manufacturers successfully crossed the 20% domestic value addition, as reported by Inc42. This development marks a major step forward in Apple’s production strategy for the Indian market.

According to official government documents cited by Business Standard, domestic value addition is gaining prominence as Apple’s iPhone exports from India surged by 76% in FY25, reaching a free-on-board (FOB) value of ₹1.5 lakh crore, compared to the previous fiscal year.

At the same time, Apple is reportedly in talks with the Murugappa Group and Titan to locally source camera modules for iPhones. The company is also exploring expanding its iPhone assembly operations through a potential partnership with Dixon Technologies.

These developments follow reports that Foxconn has exported iPhones worth $3.2 billion from India. Notably, around 97% of those units were shipped to the United States, which is a sharp increase from the 2024 average of 50.3%.

Major Apple Contract Manufacturers India Reach New Heights

Apple’s contract manufacturers in India, include Tata Electronics, Wistron Infocomm Manufacturing, Pegatron Technology India, and Foxconn.

The success represents a dramatic improvement from previous years. At the PLI scheme’s inception, this value addition stood at just 5-8%. The journey from single digits to 20% domestic value creation showcases the rapid development of local capabilities.

These manufacturers have invested heavily in building local supply chains and training skilled workers. Each company has contributed uniquely to achieving this collective milestone.

Expanding India Assembly Units Drive Local Production

India’s assembly units have significantly expanded their capabilities to support increased domestic value creation. Apple’s manufacturing partners have established sophisticated production facilities across different states. These units now handle complex assembly processes that were previously done elsewhere.

The assembly units have also focused on building local supplier relationships. This approach helps increase domestic content while reducing logistics costs. Local sourcing has become a key strategy for achieving higher value-added percentages.

Investment in technology and automation has improved productivity. The assembly units now match global quality standards while maintaining competitive costs.

Apple India Localisation Effort Gains Momentum

Apple’s localisation effort in India has accelerated significantly in recent years through comprehensive supply chain development. The company has worked systematically to identify and develop local suppliers. This approach has created a robust ecosystem supporting iPhone manufacturing.

The localization strategy extends beyond just assembly to include component manufacturing. Local suppliers now provide various parts and components for iPhone production. This deeper integration increases domestic value addition substantially.

Training and skill development programs have been crucial to success in localization. Apple and its partners have invested in developing local technical expertise.

Strategic Impact and Future Outlook

The 20% domestic value addition milestone positions India as a crucial part of Apple’s global manufacturing strategy. Apple and its suppliers aim to reach 32% of global iPhone manufacturing and 26% of their production value in India by 2026-27.

The achievement provides Apple with greater supply chain flexibility. Having substantial manufacturing capabilities in India reduces dependence on any single region. This diversification strategy helps manage various business risks.