Strengthening its presence in India as part of a diversification effort away from China, Apple has established a new research and development (R&D) subsidiary in the country.
The R&D facility will reportedly focus on research, design, testing, and providing support to third-party manufacturers.
The move to set up an R&D facility in India is significant, as it will enable the tech giant to better connect with the local manufacturing ecosystem, players, and original equipment manufacturers (OEMs) while fostering India-specific products and solutions, according to industry experts.
Apple currently has R&D facilities in the US, China, Germany, and Israel. The company did not immediately comment on its future plans regarding research and development in India.
According to Prabhu Ram, VP of the Industry Research Group at CyberMedia Research (CMR), just as China once powered Apple’s growth, India is poised to do the same over the next decade.
“Key to this growth is not just retail and marketing, but also robust R&D operations. By focusing on India-centric R&D, Apple can fuel the next wave of innovation, catering to the aspirations of Indian consumers and beyond,” Ram told IANS.
Apple is accelerating its manufacturing plans in India and Vietnam. Boosted by ease-of-doing-business and local manufacturing policies, Apple’s ‘Make in India’ iPhones are setting new export records.
The company is also planning to open four more branded retail stores in India, as confirmed by CEO Tim Cook.
“We continue to be excited by the enthusiasm we’re seeing in India, where we set an all-time revenue record. This has been an extraordinary year of innovation at Apple,” Cook said during the Q4 fiscal 2024 earnings call.
“We can’t wait to bring four new stores to customers in India. We’re passionate about education and believe technology plays a vital role in both helping teachers inspire their students and helping students learn about the world around them,” added Cook.
The tech giant is on track to surpass FY24 export figures from India, reaching over Rs 50,000 crore (more than $6 billion) in the first six months of this fiscal (FY25), according to the latest industry data.
India’s iPhone exports surged to over $10 billion in FY23-24, up from $6.27 billion in FY22-23. In total, Apple’s India operations reached $23.5 billion in value in the last fiscal year.
Apple assembled $14 billion worth of iPhones in India in the last fiscal year and exported over $10 billion worth of devices.
(Inputs from IANS)