Apple is reportedly engaged in advanced talks with component manufacturers like India's Aequs Group and Taiwan's Rayprus Technologies as part of the iPhone maker's strategy to expand its manufacturing capabilities in the world's second-biggest smartphone market.
Aequs is a company that manufactures high-quality toys, consumer durable goods, and aerospace parts in countries like India, the US, and France. On the other hand, Rayprus, a subsidiary of the Taiwanese contract manufacturing titan Foxconn, is known for producing high-quality precision camera and lens solutions.
The Cupertino-based tech is currently also in early talks with Indian contract manufacturer Dixon Technologies.
This move is part of their effort to diversify supply chains away from China, Economic Times reported citing multiple people in the know of the developments.
“The aim is to diversify but not just in the electronics manufacturing space. Aequs, for example, makes high-quality plastic toys and aerospace products as well. They can make low-engineering products such as iPhone cases and other high-quality products that require extremely high precision,” one of the persons was quoted as saying in the ET report.
“The talks are on and hopefully, they will be announced soon," the person added.
On the other hand, Foxconn subsidiary Rayprus is among the leading companies globally which make multi-camera modules for smartphones and is one of the few suppliers of the technology not based in China, another person said.
“In multi-camera modules for phones, the requirements for iOS phones, Android phones and phones which run other OS (operating software) are very different. A lot also depends on the sensors and chips which several companies have now started designing in-house,” another person said.
“Technology leaders such as Rayprus are therefore always a good bet," the person added.
The prospects and potential of electronics manufacturing in India offer a "compelling opportunity" for traditional non-electronic firms to explore this sector. This move could enhance the scale and robustness of the industry, according to Pankaj Mohindroo, Chairman of the India Cellular & Electronics Association (ICEA).
Kuldeep is Senior Editor (Newsroom) at Swarajya. He tweets at @kaydnegi.
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