Apple's Chinese Suppliers Win Expansion Permits In India As iPhone-Maker Attempts To Reduce Dependence On China

Author: Anusuya Lahiri | January 18, 2023 05:43am

• More than a dozen Apple Inc's (NASDAQ:AAPL) Chinese suppliers won initial clearance from India to expand as the iPhone maker strived to diversify its assembly network beyond China.
• About 14 suppliers bagged permits from India after Apple promoted the need for their growing presence in India, Bloomberg reports.
• AirPods and iPhone assembler Luxshare Precision Industry Co and Sunny Optical Technology (Group) Co Ltd (OTC:SOTGY) lensmaker unit were among the companies that bagged approvals. However, the companies will need to find local Indian joint venture partners.
• Also Read: Apple's India Hirings Signal Flagship Store Debut By March: FT
• The clearance signaled how India milked China's pandemic crisis and geopolitical tensions with the U.S.
• The Indian government prioritized the growth of India's manufacturing sector, doling out financial incentives and government support for companies' expansion projects.
• Apple played a pivotal role in furthering India's aspirations with partners like Hon Hai Precision Industry Co Ltd (OTC:HNHPF) Foxconn churning record iPhones in the country for the latest generation.
• Indian companies, like Tata Group, already supply components to Apple while the country strived to add more local providers into the supply chain to boost its electronics industry. 
• Joint ventures with Chinese component makers are a way of promoting India's electronics industry.
• India essentially cut off Chinese companies, including Alibaba Group Holding Limited (NYSE:BABA), from its tech economy after the countries' troops clashed violently on their long-disputed border in 2020.
• India steadily ramped up the local assembly of smartphones, allowing Taiwanese manufacturers Hon Hai, Wistron Corp (OTC:WICOF), and Pegatron Corp (OTC:PGTRF) to set up plants. But the absence of crucial component makers close to their operations stunted the domestic industry's growth prospects.
• Price Action: AAPL shares closed higher by 0.88% at $135.94 on Tuesday.
• Photo Via Company

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