How ‘national security’ concerns has made Apple rework its strategy for iPhones in India

How concerns about

Apple is reportedly looking for new suppliers who can provide crucial components to its contract manufacturers in India. According to a report in the Economic Times, the company is looking for Indian, Japanese and South Korean component manufacturers.This is said to come after delays in government approvals for imports from existing suppliers (mainly of Chinese origin) of batteries, camera lenses, chargers and other equipment needed to manufacture their flagship iPhones and iPads in India. “With imports delayed due to several pending approvals at both the central and state levels, Apple is now looking for suppliers who can establish ‘just-in-time’ supply chains in India to accelerate local production,” the report said citing sources.In January this year, around 17 Chinese companies that supply components for Apple devices applied for government permission to set up manufacturing facilities in the country. While fourteen were granted initial approval, four companies’ applications have been delayed indefinitely. Of these 17, six are said to have indicated that they are no longer interested in manufacturing in India. And at the moment the status of the four remaining companies is unknown.National security “it’s a problem”“The approvals (in January) were only initial approvals. Since most of these companies are of Chinese origin, national security is also an issue. Such approvals have to be given carefully. Issues of environmental clearances, which are a state subject, are given by expert committees,” a senior government official said.However, another government official told the publication that it is incorrect to say that we have rejected the application of any of these companies. All government approvals must be granted after careful consideration of all factors.List of 14 companies that obtained approvalsThe 14 include camera lens equipment maker Sunny Optical Technology Group and Han’s Laser Technology Industry Group, airpod maker Luxshare-ICT and capacitor chip maker ON Semiconductor Shenzhen China. Luxshare-ICT moved its manufacturing unit to Vietnam due to delays in approvals, another person close to the matter said.

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