Apple Effect: How iPhone Maker's India Push Is Building a Deeper Supplier Ecosystem

Apple is steadily expanding its manufacturing ecosystem in India by adding more domestic and global suppliers. This signals a gradual shift from an assembly-led model towards a broader electronics manufacturing base.

In a post on X (formerly Twitter), Aditya Kondawar, Partner and Vice President at Complete Circle Capital wrote, "Apple's India ecosystem has expanded from just eight companies in 2018 to around 40 module and component suppliers today".

Kondawar said that the development suggests India is "gradually moving deeper into components, sub-assemblies, and precision manufacturing" rather than remaining focused only on assembling iPhones.

He shared Apple's supplier list on its India network which included contract manufacturers such as Foxconn, Tata Electronics, Pegatron, Jabil and Wistron (now acquired by Tata Electronics).

The ecosystem also comprised component makers including Corning, Salcomp, Sunwoda, ON Semiconductor, Molex, Hindalco, Aequs and Motherson Group, along with automation and equipment providers such as Wipro PARI, Bharat Forge and Titan Engineering & Automation.

Apple is yet to respond to Outlook Business' query seeking clarification on its supply chain network.

India Moves Ahead Of Vietnam

The broader expansion comes after India reportedly overtaking Vietnam in the number of Apple suppliers operating in the country.

The report noted that Apple's supplier base in India had grown from 14 companies in 2023 to more than 40 by calendar year 2025, while Vietnam had a little over 35 suppliers.

Apple has increasingly diversified away from Chinese vendors in India, with Chinese firms accounting for less than 10% of the supplier base, compared with a significantly higher share in Vietnam, said Business Standard in a report.

The shift followed India's tighter scrutiny of investments from Chinese companies after the Galwan Valley clash, prompting Apple to increasingly work with Indian and other non-Chinese suppliers.

Manufacturing Footprint Spreads Across States

Apple's manufacturing ecosystem now extends across eight states, including Tamil Nadu, Karnataka, Telangana, Gujarat, Maharashtra, Kerala, Haryana and Uttar Pradesh, as per another report by BS.

According to the report, suppliers operate across three segments — manufacturing components and sub-assemblies for iPhone factories in India, supplying components to Apple's global production network, and producing equipment used in new iPhone manufacturing lines.

The domestic value addition in iPhone manufacturing remains around 18-20%, below the government's earlier target of 35%, as per BS. The figure highlights that localisation is still evolving despite rapid capacity expansion.

Boosting Mobile Manufacturing in India

To boost mobile manufacturing in India, the government on July 15, approved the Mobile Phone Manufacturing Scheme (MPMS) with a budgetary outlay of ₹62,500 crore.

The government aims to scale up production, deepen domestic value addition, strengthen supply chain resilience, and enhance global competitiveness. 

The MPMS scheme also aims at building Indian brands to achieve technological sovereignty, capture large economic value and create Indian patents in design and research and development (R&D).

Running till financial year 2031, the scheme will give incentive support on eligible sales for manufacturing of mobile phones in India at differentiated rates ranging from 2.25% to 5%.

It would also provide additional incentive of up to 1.5% linked to domestic sourcing of key components or sub-assemblies. For building Indian brands, an additional incentive at 3% on Eligible Sales for design and R&D of the product.