Apple Inc. Establishes its First R&D Subsidiary in India

Nitin Konde, Varun Bhardwaj

Nov 12, 2024 — 2 min read

Apple Establishes First Indian R&D Subsidiary to Drive Innovation

India might soon contribute to the design, testing, and research of Apple's new products. The Cupertino-based business has established Apple Operations India as a completely owned subsidiary in India.

The new entity's anticipated activities included hiring engineers for hardware development, leasing facilities, purchasing engineering equipment, and offering failure analysis services to group companies, according to a regulatory filing.

‘Letter of Comfort’ From Apple

According to Apple Operations India's registration with the Registrar of Companies (RoC) last week, Apple Inc. has provided "a letter of comfort," guaranteeing that it will continue to provide "operational and financial support" for the "foreseeable future." It would be the first time in Indian history for the iPhone manufacturer to design and test hardware in the nation. Currently, the business conducts research and development in Israel, China, Germany, and the US. Additionally, this is the first time the US parent company's Macintosh PC manufacturer has established a direct subsidiary in India.

According to the RoC, Apple Operations International, based in Ireland, is the owner of Apple India, the holding company of its current sales and marketing entity.

According to the application, Apple outsources the manufacturing of its products in India, and the new entity would assist independent contractors and manufacturers by offering hardware, software, and other services.

Apple’s Operations in India

Top international electronics companies like Samsung, LG, and Sony currently have research and development (R&D) facilities in India; however, these are primarily restricted to software development for international launches and hardware localisation of products. Vivo and Oppo, two Chinese phone manufacturers, operate similarly.

To outsource tech and back office services and carry out research and development, numerous multinational corporations from the United States and Europe have established global competence centres (GCCs) in India.

In addition, Apple is establishing the new India corporation in the midst of the ongoing economic dispute between the US and China, which is predicted to get worse after Donald Trump won the recently concluded Presidency Election.

Apple is Growing its Network in India

According to its memorandum of association with the RoC, Apple Operations India will "undertake research and development and design relating to science, engineering, technology and applied technology, computer and information technology programming, research and systems, related technical support, technical testing and analysis," among other related activities.

According to the memorandum, it will also supply third-party manufacturers and/or contractors with any kind of "equipment, instruments, components, and systems, technical, electronic, mechanical, software, or otherwise, by way of lease, hire, or otherwise."

Tim Cook, the company's CEO, has admitted in all of the company's earnings calls over the past few years that Apple has been breaking sales records in India every quarter. As Cook stated last month, Apple now has two company-owned stores in India and intends to launch four more soon. Apple is currently the nation's biggest exporter of electronics after growing its manufacturing facilities there with three partners.