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Making iPhone camera modules in India: Apple in talks with Titan, Murugappa

Apple is in talks with the Murugappa Group and Tata Group's Titan Company to produce sub-components needed for iPhone camera modules

Apple, Apple phones, iPhones

Photo: Bloomberg

Rimjhim Singh New Delhi

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Apple is in talks with the Murugappa Group and Tata Group's Titan Company to assemble and produce sub-components for iPhone camera modules, according to a report in The Economic Times (ET).

Currently, Apple does not have Indian suppliers for the camera module integrated into its iPhones, despite the assembly of several models in India, a person familiar with the matter told ET. "Partnering either with Titan or the Murugappa Group could address this issue," said the source cited above.

A source told ET, "In a timeframe of five to six months, they (Apple) will have finalised which is the (partner) to bet on."
 

The camera module stands as a crucial component, currently presenting one of the "biggest challenges for Apple in India", the ET report stated. Titan specialises in the precision manufacturing of components for its watches and jewellery. The Murugappa Group has extensive interests spanning engineering, financial services, and chemicals, ET reported.

According to a report by ET on April 11, Apple aims to shift a minimum of half of its supply chain to India and intends to enhance local value addition from suppliers by nearly 50 per cent within the next three years.

A source told the ET, "Starting with module assembly is a good foundation to attract different sub-assembly manufacturers and build the complete local value chain — from image sensor to lenses and the entire camera module."

According to the ET report, image sensor chips within a camera module are the most costly component of a smartphone as well as of its display. "For image sensors, Apple depends largely on Sony in Japan, Samsung in Korea and Omnivision in China. These image sensors are specialised semiconductors, and it is very costly for new players to enter this market," Martin Yang of Oppenheimer & Co, an investment banking company, told the ET.

In January, ET reported that Apple was targeting production of nearly Rs 1 trillion worth of iPhones in India by March end (Q4FY24) or the first quarter of FY25, having increased capacity at its manufacturing partners. Around 70 per cent of iPhones produced in India are exported, which is only set to increase.

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First Published: Apr 16 2024 | 9:04 AM IST

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