Apple in talks with Titan, Murugappa for making iPhone camera modules in India

Apple is in talks with the Murugappa Group and Tata Group's Titan Company to assemble and produce sub-components for iPhone camera modules. Currently, despite the assembly of several models in India, Apple does not have Indian suppliers for the camera module integrated into its iPhones. The camera module stands as a crucial component, currently presenting one of the biggest challenges for Apple in India.

While 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.

Apple reportedly 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. According to a source at Apple, "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."

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," another source said.

In January, according to a report in Economic Times, 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.