Camera modules for Apple iPhone

Apple is close to deal with Murugappa Group and Titan Company, both belonging to Tata Group, in which they will share resources and expertise to assemble and even manufacture camera modules for Apple iPhone. In spite of working a lot in India for assembling products, Apple has not settled for sourcing iPhone camera modules for its devices from Indian providers. This potential gap can be bridged by Apple by becoming a partner with either Titan or Murugappa Group, the deal is supposed to be concluded within next five-six months.If the partnership finalizes, it can be treated not only as an incremental step for Apple, but also as an important shift in their supply structure from China.

One of the sources in the report said ,"Teaming up with Titan or Murugappa Group could fix this problem." "It'll probably take about five to six months for Apple to decide which partner to go with," another source said.

As one source in the report rightly mentioned, the camera module is the life-giving factor and it is a very challenging activity for Apple in India. The key advantage for TITAN lies in designing and producing extremely detailed mechanical parts for its watches and jewelry, while MGR, positioned in Chennai for more than a century, has a wide range of business sectors that include engineering, financial services, and chemicals. 

iPhone
Image: IndiaToday

According to a recent report, Apple seeks transformation of a half of its stands in India. Besides, the company expects to increase localizations of suppliers (as many as 50%) by 2025. As for why this is happening, there has been no official information about this from Apple, Murugappa Group, or Titan. The industry commentators believe that Apple will carry out the camera module assembly in India. During this year, the electronics and components sector grew rapidly with the Murugappa Group getting a 76% stake in Moshine Electronics, a camera module maker based in Noida. Meanwhile, Titan Company, headquartered in Bengaluru, owns Titan Engineering and Automation, which initially began as an in-house engineering unit specializing in crafting high-precision components.

A source reported ,“Murugappa Group, especially after getting Moshine Electronics, is in a good spot. In the future, if they get a fab, they could make the sensor too.”

Further adding “Tata group (which owns Titan) could also start by putting together camera modules and parts and then maybe start making them in the fab.”

The sensor chips in camera modules and screens are usually the biggest and most costly components in a phone. Both Tata and Murugappa Group are looking for government assistance to set up a chip-making facility in India. Tata is also constructing a large chip plant in Gujarat.  According to Martin Yang from Oppenheimer & Co, Apple would either have to import these components from abroad or begin manufacturing them within India.

 He stated "For the sensors, Apple mostly gets them from Sony in Japan, Samsung in Korea, and Omnivision in China. These sensors are really special chips, and it's really expensive for new companies to start making them.”Locally producing and fulfilling the requirements will save Apple a lot of money and reduce their dependence on Chinese suppliers.

By utilizing a special government program, Apple is striving to produce goods in India. The company's major partners, including Foxconn, Pegatron, and recently Tata Electronics (previously Wistron), have established a strong presence in India's market.Last year's report indicated Apple's talks with firms such as India's Aequs Group, Taiwanese company Rayprus Technologies (camera and lens components), and Indian company Dixon Technologies (assembly work).

Rayprus is a top global player in multi-camera phone technology, noted for being outside China. Apple aims to produce nearly Rs 1 lakh crore worth of iPhones in India soon, with many slated for export.Apple's potential move to manufacture camera components in India marks a strategic shift towards local production, aligning with its broader initiative to bolster manufacturing capabilities within the country.

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