Apple to Set Up Its First-Ever Research Subsidiary in India as Part of Diversification Effort

However, Apple has solidified its presence in India by opening a new research and development subsidiary, as it diversifies its supply chain and reduces dependency on China. The new R&D facility will reportedly do research, design, test, and support third-party manufacturers. It is considered important for integration with the local manufacturing ecosystem of India and original equipment manufacturers (OEMs) to develop India-specific products and solutions.

Today, the company operates its R&D facilities in the US, China, Germany, and Israel. Despite the company being mum on its future plans regarding R&D in India, industry experts firmly believe that the Indian market will be an important contributor to Apple's growth for the next ten years. According to Prabhu Ram, VP of CyberMedia Research (CMR), if China once was the growth story for the Cupertino, California-based technology giant Apple, India is now going to fuel the future expansion of the company, not only in retail and marketing but also through strong R&D operations customized according to Indian consumers.

Apple is scaling up its manufacturing in India and Vietnam, taking opportunities from the favorable local policies on manufacturing and ease of doing business. Its 'Make in India' initiative, for instance, has registered record-breaking exports of iPhones. In addition, Apple is planning four more retail stores in the country, with CEO Tim Cook expressing excitement over the Indian market and its huge potential for further innovation.

The company's exports from India are likely to break Rs 50,000 crore ($6 billion) during FY25 and would be much more than what it exported during FY24. Apple's iPhones worth more than $10 billion were exported in 2023-24, a three-fold increase from $6.27 billion during 2022-23, and the total value of the India operations stood at $23.5 billion for the last fiscal.