Apple's supplier base in India has almost doubled since 2018
What's the story
Apple's supplier network in India has seen significant growth over the last few years. According to a Moneycontrol analysis of Apple's supplier list, the number of vendors with operations in India has nearly doubled from eight in 2018 to 14 in 2023. This means that out of 187 suppliers on Apple's 2023 list, 14 have sites in India, up from eight out of 191 five years ago.
Supply chain
Global supply chain for products
Apple's supply chain for iPhones, Watches, and AirPods is a global one, with nearly 30 countries contributing. However, most high-value parts are still sourced from abroad. An industry source explained that Apple sources individual components from different nations and consolidates them at a staging location before sending these kits to key production sites in India. For printed circuit board assemblies (PCBAs), components are imported while sub-assembly happens in India.
Expansion potential
Actual number of suppliers could be higher
The actual number of suppliers could be as high as 35-40, considering smaller assembly players that also contribute to Apple's manufacturing plan. Despite the growth, local value capture remains limited, with current domestic value addition focused on self-assembly items such as batteries and cells, chargers, mechanicals, packaging boxes, and cables.
Market share
China's dominance and India's growing share
China still dominates Apple's supplier ecosystem, accounting for 157 of the 470 supplier units listed by Apple for 2023. Taiwan comes second with 48. However, India's share has grown from just 1% in 2019 to a more substantial 3% in 2023. The Indian government is working to expand this base after achieving large-scale assembly success.