Apple is changing manufacturing and transport infrastructure in India
Apple’s manufacturing investments in India are translating into significant additional investments elsewhere across India’s manufacturing economy and wider transport ecosystem.
Apple is making waves
India is rising, and Apple’s iPhone economy is helping that rise happen. The company is thought to want to make a third of all its smartphones in India over the next couple of years, but manufacturing at that kind of scale requires other things, including local component suppliers and solid transport infrastructure. Follow the money means you can already see these things taking root across the nation.
Made in India
Local reporting claims Apple is becoming increasingly reliant on local suppliers in India to manufacture key components for iPhones – and also Macs, iPads, and AirPods.
The company has partnered now with over 40 companies, the report says, including Dixon Technologies, Amber Electronics, HCLTech, Wipro, and Motherson Group. Apple’s biggest multinational conglomerate, Tatu Group, has taken a seat higher upstream and now makes iPhone for the company, also in India.
There’s an extent to which Apple has been forced to do this.
For one thing, souring relationships between India and China, particularly following the Galwan Valley conflict, mean some Chinese firms are unwilling or unable to set up manufacturing in India. That’s an opportunity for local suppliers in India and means Apple has been engaged in detailed discussions with Indian companies, exploring joint ventures with global partners from countries like China, Taiwan, and Japan.
Apple has also set up a new subsidiary, Apple Operations India, to focus on R&D, testing and support for third-party manufacturers setting up shop there.
What happens in Chennai…
But of course, this investment in manufacturing also demands world class transportation networks, and the impact of Apple is also being felt there. Chennai Airport is seeing major investment in its cargo terminal to better handle electronics exports, particularly iPhone exports. The airport is close to one of Apple’s larger manufacturing bases.
The airport is also improving access roads to the cargo terminal and increasing the amount of parking space it offers trucks to allow for an additional 200 vehicles.
“Initially, the airport will handle around 70 tonnes of Apple products, with the ability to increase this to 100 tonnes in the future,” a local report says. These improvements are expected to complete by the first week of January when exports are expected to increase.
Apple may be losing a little ground in China, but its sales in India continue to accelerate with consumers there investing in the Pro range of iPhones.
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