Apple’s India Supplier Base Nearly Doubles Since 2018, Value Addition Hits 20%

Apple is steadily expanding its presence in India even though a majority of its high-value parts are sourced from offshore. A recent analysis of the top suppliers’ list of Apple shows that the number of Indian vendors has almost doubled, growing from eight in 2018 to fourteen in 2023. On the other hand, domestic value addition (DVA) across iPhone models has touched nearly 20%, thanks to parts such as chargers, batteries and other mechanical components.

Supplier Growth and Global Supply Chain

In 2018, out of the 191 global suppliers of Apple, India represented a marginal part with just 8 suppliers on board. By 2023, this number had grown to 14 companies with Indian operations of the total count of 187 suppliers worldwide. India represents one of 30 countries of Apple’s global supply chain that covers products such as iPhones, watches and AirPods. If industry sources are to be believed, this number could be higher, around 35 to 40, considering smaller assembly and subassembly players.

Local Value Addition Remains Limited

The current domestic value addition majorly hovers around the domain of self-assembly items that include batteries and cells, chargers, mechanicals, packaging, boxes, cables and a handful of smaller parts. This roughly yields about 20% DVA across iPhone models. The Indian government is keen on raising this percentage to about 30–40 %. Although India is now adding more value locally, a majority of high-value components, such as sophisticated display modules, sensors, and camera assemblies, are still imported from other countries.

Global Competition

In the leading position of the supplier ecosystem of Apple is China, which constitutes an impressive 157 of the 470 supplier units Apple listed for 2023. The next supplier is Taiwan with a distant number of 48 suppliers. Several component heavyweights, namely Infineon Technologies, ON Semiconductor, and ST Microelectronics, operate at least a dozen operations across multiple geographies, reflecting Apple’s multi-hub strategy for critical parts like power management, sensors, and connectivity.

India’s share has moved to 3% in 2023 from 1% in 2019. The government is pushing to deepen the base after cracking large-scale assembly. Localisation could see a boost if the Indian companies secure approvals under the ECMS 2.0 scheme. It could narrow the gap with China by raising India’s value addition.

Disclaimer:At HDFC SKY, we take utmost care and due diligence in curating and presenting news and market-related content. However, inadvertent errors or omissions may occasionally occur.

If you have any concerns, questions, or wish to point out any discrepancies in our content, please feel free to write to us at content@hdfcsec.com.

Please note that the information shared is intended solely for informational purposes and does not make any investment recommendations.