Apple is reportedly in advanced talks with component manufacturers Aequs Group and Rayprus Technologies as part of its strategy to expand its manufacturing capabilities in India, the world’s second-largest smartphone market. These discussions are part of Apple’s efforts to diversify its supply chains away from China and deepen its presence in the Indian market. The Cupertino-based tech giant is also exploring potential partnerships with Indian contract manufacturer Dixon Technologies.
Aequs is an Indian company known for manufacturing high-quality toys, consumer durable goods, and aerospace parts. Apple’s discussions with Aequs aim to leverage the company’s expertise in producing low-engineering products, such as iPhone cases, and other high-quality products that require precision. Aequs has manufacturing facilities in India, the US, and France, making it an attractive partner for Apple’s manufacturing expansion plans in India.
Rayprus Technologies is a subsidiary of Foxconn, the Taiwanese contract manufacturing giant. Rayprus specialises in producing high-quality precision camera and lens solutions. It is one of the leading companies globally that manufactures multi-camera modules for smartphones, and it is not based in China, which adds to its appeal as a potential supplier for Apple. The requirements for multi-camera modules vary across different phone operating systems, and Rayprus’s expertise in this area makes it a valuable partner for Apple’s manufacturing operations.
Apple aims to leverage India’s growing electronics manufacturing sector and the government’s production-linked incentive (PLI) scheme to enhance its presence in the Indian market. By partnering with local manufacturers like Aequs and Rayprus, Apple can tap into India’s skilled workforce and benefit from the country’s favourable business environment. By expanding its manufacturing operations in India, Apple can also mitigate risks associated with geopolitical tensions and disruptions in the global supply chain.
Apple’s manufacturing push in India presents a compelling opportunity for traditional non-electronic companies to venture into the electronics manufacturing sector. This move can contribute to the scale and robustness of the industry, fostering the development of Indian suppliers and potentially transforming the Indian electronics industry, similar to the growth of Chinese brands like Oppo, Vivo, and Xiaomi.
RTM Watch’s Take
Apple’s advanced talks with Aequs and Rayprus signify the company’s commitment to expanding its manufacturing operations in India. By diversifying its supply chains and leveraging India’s manufacturing capabilities, Apple aims to strengthen its presence in the Indian market and reduce its dependence on China. These partnerships with Aequs and Rayprus, along with potential collaborations with Dixon Technologies, highlight Apple’s strategic approach to tap into India’s skilled workforce and favourable business environment. As Apple continues to ramp up its manufacturing in India, it is poised to contribute to the growth of the Indian electronics manufacturing sector and drive economic development in the country.
