Apple looking for suppliers to provide crucial parts to Indian manufacturers

Apple suppliers: iPhone maker Apple is looking for new suppliers in India, South Korea and Japan to provide crucial components to its contract manufacturers in India, reported The Economic Times. This comes after government is delaying the permit clearance of import from existing suppliers who are primarily of Chinese origin.

The import includes, batteries, camera lens, chargers and other equipment required to make its flagship iPhones and iPads in India.

Import restriction on Chinese components

About 17 Chinese companies who supply components for Apple’s devices applied for government clearances to set up manufacturing facilities in India in January. As per Economic Times, Out of this, 14 were granted initial approval, the application of four companies have been indefinitely delayed, while six have indicated to the government that they are no longer interested in making in India.

Also Read: Apple to manufacture iPhone15, iPhone15 Plus in India; how will it affect the prices?

“The approvals (in January) were only initial approvals. Because most of these companies have Chinese origin, national security is also an issue. Those approvals have to be carefully given. Issues of environmental clearances, which are a state subject, are given by expert committees,” a senior government official told Economic Times.

The Economic Times report mentioned that with delayed imports, Apple is now looking for suppliers who can set up “just-in-time” supply chains in India to expedite local production.

Industry Experts as quoted by The Economic Times also mentioned that companies which supply crucial components but are smaller on the global stage, are unlikely to take the risk of investing in a hostile country even after they get approvals.

Over the years, Apple has become aggressive in pushing manufacturing in India and diversify its supply chain out of China.