Betting big on India, Apple is launching a new R&D hub to drive product design, testing, and tech innovation, tapping into the country’s growing talent pool.
India is set to take a front seat in Apple’s product development, covering research, design, and testing, with the establishment of its wholly-owned subsidiary, Apple Operations India.
According to its regulatory filing, the new entity will focus on activities such as procuring engineering equipment, leasing facilities, hiring engineers for hardware development, and offering failure analysis services to Apple’s group companies.
Apple is actively supporting the subsidiary with both operational and financial backing for the foreseeable future. Before, it had traditionally conducted its R&D in the US, China, Germany, and Israel, and this would be the first time the company had undertaken hardware design and testing in India.
The new subsidiary will support third-party manufacturers in India, providing hardware, software, and other services, as per the filing. Apple Operations India is currently in its investment phase, with assets valued at Rs 382 million in capital work-in-progress and Rs 368 million in fixed assets. Industry experts suggest this move signals Apple’s intention to deepen its operational presence in India beyond just sales and assembly.
While companies like Samsung, LG, and Oppo already have R&D operations in India, these efforts have mainly focused on product localisation and software development.
According to the Economic Times, Apple’s decision is viewed as a strategic step to tap into India’s expanding technological capabilities, with over 17,000 app developers already based at its Bengaluru developer centre.
However, this move comes amid heightened tensions between the US and China. Still, industry experts believe Apple’s R&D expansion is more about tapping into India’s tech talent than directly reacting to the US-China trade conflict.
The memorandum of association for Apple Operations India outlines a broad mandate, including procurement, R&D, design, technical testing, and leasing equipment to third-party manufacturers.
The company has been breaking sales records in India, where it is also expanding its manufacturing operations through partners like Foxconn, Pegatron, and Tata Electronics.
India now contributes about 14% to Apple’s overall production, and the country has become a significant hub for Apple’s iPhone assembly, especially after the launch of the Production-Linked Incentive (PLI) scheme and the COVID-19 pandemic.
Apple has also been expanding its retail presence in India, with plans to open more stores, further solidifying the country’s importance in the company’s global strategy.
