The Chennai facility of Flex, a key supplier of Apple products, located in Tamil Nadu, underwent scrutiny by the income tax department, as revealed by new reports.
Apple Supplier Flex Scrutinized By Income Tax Department
Tax investigators conducted searches at the Chennai factory as part of their ongoing investigation. Flex, however, has not been formally informed of the specific purpose behind this visit, as per a source cited by the news agency.
In 2019, Flex, an electrical and electronics component manufacturer based in the United States, announced plans to diversify its operations from China to various other regions, including India. A substantial investment of $500 million was earmarked for the Indian market.
Simultaneously, another Apple supplier based in India, Pegatron, faced a temporary production halt due to a fire incident at its factory near Chennai. The fire reportedly originated from a short circuit caused by an electrical switch being inadvertently left on during the device testing phase in the assembly process.
Apple’s Smartphone Assembly Within 2017
Apple has been actively involved in smartphone assembly within India since 2017. However, a notable shift occurred when Apple initiated the assembly of iPhone 14 models within the country.
The technology behemoth has since emerged as the leading smartphone exporter in India, surpassing Samsung. In the quarter spanning June 2023, out of a total of 12 million smartphone shipments originating from India, Apple claimed a substantial market share of 49%, surpassing Samsung, whose market share stood at 45%.
India notably ascended to become Apple’s fifth-largest iPhone market in the second quarter of 2023, outpacing sales in Germany and France during the same period. Additionally, India contributed nearly 4% of all iPhone sales in the second quarter, according to Counterpoint, a technology market research firm.
Earlier this year, Tim Cook, the CEO of Apple, inaugurated the inaugural Apple store in Mumbai, and shortly thereafter, a second store was opened in Delhi, showcasing the company’s burgeoning footprint and commitment to the Indian market.
