Amid diversification push, Apple plans research subsidiary in India

The research and development facility would reportedly focus on research, design, testing and providing support to third-party manufacturers

New Delhi: Firming up its India presence as Apple diversifies its vast supply chain and research outside of China, the iPhone maker has set up a new research and development subsidiary in the country.

The research and development facility would reportedly focus on research, design, testing and providing support to third-party manufacturers. The move to establish a R&D facility in India is significant as this will help the tech giant connect better with the local manufacturing ecosystem player, original equipment manufacturers (OEMs) and create India-specific products and solutions, according to industry players.

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Apple currently have R&D facilities in the US, China, Germany and Israel. The company did not immediately comment on its India future plans regarding research and development. According to Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR), just as China powered Apple’s growth in the past, 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 said. Apple is fast forwarding its manufacturing plans in India and Vietnam. Buoyed by the ease-of-doing business and friendly local manufacturing policies, Apple’s ‘Make in India’ iPhones are breaking all previous export records.

The company is set to open four more own-branded retail stores in India, according to its 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,” said Cook during the quarterly earnings call (Q4 fiscal year 2024).

“We can’t wait to bring four new stores to customers in India. We’re passionate about education and believe technology has a vital role to play in both helping teachers to inspire their students and students to learn about the world around them,” said Cook. The tech giant is on course to surpass the FY24 figures of exports from India, reaching over Rs 50,000 crore (more than $6 billion) in the first six months this fiscal (FY25), according to latest industry data.

The iPhone exports from India surged to cross $10 billion in 2023-24 from $6.27 billion in 2022-23. Overall, the iPhone maker’s India operations reached $23.5 billion in value in the last fiscal (FY24). Apple assembled $14 billion of iPhones in India in last fiscal, exported more than $10 billion worth of devices.