Cupertino, California – In a significant move to strengthen its operations in India, Apple Inc. has established a wholly owned subsidiary, Apple Operations India, marking a major shift in the company’s global research, design, and testing landscape. This development is the first of its kind for Apple in India and signals the tech giant’s intent to engage the country’s talent pool more deeply.
Registered with the Registrar of Companies (RoC) last week, Apple Operations India has laid out its scope in a regulatory filing, including the acquisition of engineering equipment, leasing of office space, hiring engineers for hardware development, and conducting failure analysis for Apple’s group companies. In a noteworthy gesture of support, Apple has issued a ‘letter of comfort’ to the subsidiary, assuring ongoing operational and financial backing.
Until now, Apple’s R&D operations were concentrated in the US, China, Germany, and Israel, with India primarily serving as a manufacturing base through partnerships. This new venture marks Apple’s first direct engagement in R&D in India, demonstrating a long-term commitment to developing and testing products within the country. Currently in the investment phase, Apple Operations India has reported assets in capital work-in-progress valued at Rs 38.2 crore and fixed assets worth Rs 36.8 crore, underscoring the company’s substantial investment.
Apple’s new subsidiary places India alongside countries like the US and China in its product development strategy, moving beyond assembly and sales. According to Mohit Yadav, founder of business intelligence firm AltInfo, the creation of Apple Operations India highlights Apple’s interest in cultivating a more robust presence in the Indian market.
Historically, global electronics brands such as Samsung, LG, and Sony have engaged in R&D operations in India, focusing mainly on hardware localization and software development. Apple’s new subsidiary aims to delve deeper, with a mandate that includes manufacturing support, procurement management, and research into emerging technologies. This decision coincides with an increasingly complex economic environment, including US-China trade tensions; however, Tarun Pathak, Director of Research at Counterpoint Research, asserts that Apple’s primary motivation is India’s vast technological talent pool.
Apple’s memorandum of association for its new Indian subsidiary indicates a broad remit, spanning the development, manufacturing, support, and R&D of technologies in science, engineering, and computer systems. The memorandum also specifies that Apple Operations India will supply equipment and technical support to third-party manufacturers, bolstering the production process for Apple’s global products.
India has become an important growth market for Apple, with record-setting sales reported by CEO Tim Cook. The country is now Apple’s largest electronics export base, thanks to its collaboration with partners like Foxconn, Tata Electronics, and Pegatron. As of now, India contributes around 14% of Apple’s global production. The establishment of Apple Operations India signals a strategic expansion that will likely cement Apple’s footprint in the country for years to come.