The Cupertino-based tech giant Apple is about to finalize a deal with Titan Company (Tata Group’s venture) and the Chennai-based Murugappa Group. As part of the deal, the Indian companies will assemble camera modules for iPhones as part of the company’s strategy to move away from its dependence on Chinese suppliers.
Locally Sourced Camera Module Could Lower iPhones’ Price
The camera module is one of the most sophisticated components of an iPhone. Until now, Apple didn’t have a local assembly unit or manufacturer in India that could provide high-quality camera modules. However, as the deal between Titan Company and Murugappa Group goes through, the company will be able to source the components locally, which could lower the iPhone’s prices for Indian customers.
According to a report by The Economic Times, Apple will close the deal in the next five to six months. Hence, even though the deal might not be completed in time for the iPhone 16, we might see locally manufactured camera components on some models of the iPhone 17 lineup, which will arrive in 2025.
Titan Company And Murugappa Group: Why Did Apple Choose Them?
While Titan Company by Tata has its own engineering and automation subsidiaries that cater to aerospace and defense industries, Murugappa group has a majority stake in Moshine Electronics, the Noida-based camera module company. Hence, both companies have the required expertise to make high-quality camera modules, possibly including housing and other components.
Further, both companies already have a green signal for setting up chip assembly lineups in the country. Tata Group is already building one of the biggest indigenous chip manufacturing plants in Gujarat, India. The estimated cost of this particular project is $11 billion (about Rs. 90,000 crore).
Apple’s Indian iPhone Production Could Grow Five Times In The Next Four-Five Years
Due to the rising geopolitical tensions, Apple has been actively looking for manufacturing alternatives. Previously, a large portion of the company’s assembly units and supply chain depended on China. However, in recent times, the company has explored options like India and Vietnam. Over the last few years, Apple has increased the production of iPhones in India.
According to several reports, Apple could increase its production in India by over five times to around $40 billion in the next four to five years. Currently, around 70 percent of the iPhones made in India are exported to other regions. In addition, the country can tap around 12 percent of global iPhone production this year, up from nine percent last year.
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