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Key Highlights Apple's battery supplier Flex has started manufacturing from its India plant iPhones made using locally sourced battery packs will also be exported With Flex starting manufacturing in India, Apple has increased its supplier base in India to six

New Delhi: In a big boost to government's 'Make in India' campaign, iPhone maker Apple has started sourcing battery packs from its US contract manufacturer Flex's India plant for iPhones made in India.

The Cupertino-based company in building a parts ecosystem in India so as to reduce its dependence on China amid the ongoing trade war between Washington and China.

“Flex is making battery packs for Apple... supplies have begun for iPhones to be sold in India, and for exports,” a senior industry executive who is aware of its plans told a leading business daily.

According to media reports, Apple has asked suppliers to shift 15-30% of their production from China to other countries so the development is a welcome move for the company.

With Flex starting manufacturing in India, the iPad manufacturer has increased its supplier base in India to six, including large contract manufacturers Taiwan’s Foxconn and China’s Wistron, the publication mentioned.

Worth mentioning here is that Finnish company Salcomp, which supplies chargers to Apple and is the largest player globally, has made India a huge base over the past few years. Chinese companies such as CCL Design, Yuto Electronics and Sunwoda Electronics supply packaging material and printing technology to the phone maker, the business daily mentioned citing industry insiders. The companies have been named in Apple’s supplier list.

“Apple’s India specific moves, including ramping up component production and manufacturing iPhones are part of its move to make India a prominent hub, and as a result of the ongoing trade war with China,” the publication quoted Prabhu Ram, head of intelligence at Cybermedia Research as saying.

So far Apple has struggled to increase its presence in India with it's market share currently hovering around 1% in volume terms and 3% by value as there is limited demand for its expensive products in India, which is flooded with affordable high-specification smartphones from Chinese players such as Xiaomi and OnePlus.

Apple’s plan to increase component sourcing from within India is a step in “the right direction” as it will increase local sourcing levels for the company, but battery packs contribute little to the value addition in iPhones since the component contributes to just about 1% of value of making the device, Neil Shah, research director at the Hong Kong-based Counterpoint Research told the publication.

“The real value addition will take place when the assembly of printed circuit boards (PCBA) begins in India,” Shah added.

PCBA makes up for more than 50% of the production cost of a smartphone, and several players including Samsung, Xiaomi, Oppo, Vivo and Lava operating in India have already started assembling the component locally over the past few years, the daily added.

With increased local sourcing, Apple may be able to meet requirements for setting up its retail stores under the Single Brand Retail Trade (SBRT) route, which was further eased last month.