The Business Bytes
New Delhi, November 9, 2024 (TBB Bureau): In a significant boost to its India presence, Apple Inc. has announced the establishment of its first research and development (R&D) subsidiary in India, marking a milestone as the tech giant diversifies its extensive supply chain and research capabilities outside of China. The new R&D facility is expected to play a crucial role in enhancing Apple’s engagement with the local manufacturing ecosystem, original equipment manufacturers (OEMs), and suppliers, while focusing on the research, design, testing, and support of products tailored for Indian consumers.
The decision to open an R&D center in India underscores Apple’s long-term commitment to the country, aligning with the company’s growing focus on localization. Industry analysts view this as a strategic move that will enable Apple to develop India-specific innovations, fueling further growth in one of the world’s most promising markets for consumer electronics.
Prabhu Ram, VP of the Industry Research Group at CyberMedia Research (CMR), emphasized India’s potential to power Apple’s future growth, similar to China’s impact in previous years. “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,” said Ram.
Apple’s expansion in India is not limited to R&D. The tech giant, known for its iconic iPhone, is fast-tracking its manufacturing plans in India, propelled by favorable policies and ease of doing business. The company’s ‘Make in India’ initiative has seen record-breaking exports, positioning India as a global iPhone manufacturing hub. According to industry data, Apple’s iPhone exports from India soared to $10 billion in fiscal year 2023-24, up from $6.27 billion the previous year. This fiscal year, Apple is set to exceed last year’s performance, with exports from India already surpassing $6 billion in the first half alone, bringing the total operational value in the country to an impressive $23.5 billion in FY24.
During Apple’s Q4 earnings call for fiscal year 2024, CEO Tim Cook expressed optimism about the company’s growth in India, hinting at further retail expansion. “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. We can’t wait to bring four new stores to customers in India,” Cook said. He added that Apple’s commitment to education and technology-driven learning remains strong, a sentiment likely to resonate with India’s rapidly digitizing population.
With Apple’s ambitious plans for manufacturing, R&D, and retail expansion, industry experts anticipate that India will become a cornerstone of Apple’s growth strategy, both as a production base and a thriving consumer market. The new R&D subsidiary stands to play a pivotal role in driving this vision forward, further solidifying Apple’s long-term footprint in India.
