Apple tests integrating India's Aequs Group into local supply chains for MacBook, Apple Watch

Apple is advancing efforts to diversify its supply chain by testing Karnataka-based Aequs Group for potential integration. The manufacturer, known for producing toys, consumer goods, and aerospace components, has reached the trial stage of Apple’s supplier vetting process, according to sources familiar with the situation.

If successful, Aequs will become the second Indian company on Apple’s supplier list and the only one to manufacture parts for MacBooks and Apple Watches.

Apple’s expansion in Indian
Currently, Tata Electronics is the only Indian supplier working with Apple, producing enclosures for iPhones. Aequs has reportedly begun trial production of MacBook enclosures and mechanical components for Apple Watches.

These parts have also been sent to Apple’s designated suppliers in Vietnam for a “fitment check” to ensure compatibility and quality, sources added.

Apple has been known for its high standards when onboarding new suppliers, often starting them with less complex components. Experts believe that even if Aequs clears the trial stage, it will likely begin with aluminium parts instead of Apple’s latest titanium casings.

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Apple’s emphasis on premium materials, such as anodised recycled aluminium for MacBooks, means suppliers need to elevate their production expertise to meet these exacting requirements.

Industry analysts note that this development represents a promising opportunity for non-electronics companies in India to enter the high-tech manufacturing space. With Apple increasingly looking to ramp up production in India, this shift is expected to bolster the country’s electronics manufacturing ecosystem.

Apple’s drive to diversify beyond China
Apple’s interest in expanding its Indian supplier base reflects its ongoing efforts to reduce dependency on China. Delays in securing government approvals for importing components from Chinese suppliers have prompted Apple to explore alternatives from India, Japan, Taiwan, and South Korea.

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However, on a recent trip to Beijing, Apple CEO Tim Cook has said that Apple is looking for ways to invest more in China.

Nonetheless, the company aims to streamline operations in India by working with local suppliers for components such as batteries, camera lenses, and chargers for its flagship products.

India’s production-linked incentive (PLI) scheme has further encouraged Apple to scale up manufacturing in the country. Some of its major electronics manufacturing partners, including Foxconn, Pegatron, and Wistron (now part of Tata Electronics), are already operating in India. These companies have been expanding aggressively, with Foxconn ramping up investments and exploring new business opportunities across the country.

Tata Electronics has also been rapidly scaling operations, and other American companies like Corning and Jabil have committed significant investments to support Apple’s growing production needs in India.

As Apple continues to push for local manufacturing, the inclusion of suppliers like Aequs signals a major shift in the company’s global supply chain strategy. This momentum not only highlights India’s potential as a manufacturing hub but also positions the country as a key player in Apple’s future operations.