Apple is reportedly in the final stages of negotiations with Murugappa Group and Titan Company, seeking to establish a partnership for the assembly and potential manufacturing of sub-components for iPhone camera modules. The absence of Indian suppliers for Apple's iPhone camera modules makes this potential collaboration with either Titan or Murugappa a significant development. The selection of a partner is anticipated to be determined within the next five to six months, indicating Apple's strategic approach to diversifying its supplier ecosystem in India.
The camera module is highlighted as one of the most advanced pieces of technology in Apple's iPhone, with non-Pro models featuring dual cameras and Pro models equipped with a more intricate triple camera setup. Both Murugappa Group and Titan Company possess strong backgrounds in high-precision manufacturing, with Murugappa Group's recent acquisition of a majority stake in camera module maker Moshine Electronics further demonstrating their capabilities in this sector. Furthermore, Titan Company's subsidiary, Titan Engineering and Automation, serves global clients in industries like defense and aerospace, showcasing their expertise in precision manufacturing processes.
In a bid to enhance its local manufacturing capabilities in India, Apple's potential collaboration with Indian partners like Murugappa and Titan could lead to cost benefits by reducing its reliance on Chinese suppliers. The move is in line with Apple's proactive stance on manufacturing in India, supported by the production-related incentive scheme, with approximately 70% of iPhones manufactured in India currently being exported—a figure expected to rise in the future. Additionally, both Titan and Murugappa groups are eligible for government incentives to establish a semiconductor chip assembly unit in India, aligning with India's aim to bolster its manufacturing sector and attract foreign investment.