Apple has incorporated a wholly owned subsidiary in India, named Apple Operations India, to support the development of new products, including research, design, and testing. The company’s regulatory filing listed procurement of engineering equipment, leasing of facilities, employing engineers for hardware development, and providing failure analysis services to group companies as proposed activities. Apple has given a letter of comfort, assuring it will provide “operational and financial support” till the “foreseeable future.” This is the first time the Macintosh PC maker is setting up a direct subsidiary of the US parent in India.
The company’s Operations India is laying significant groundwork in India with capital work-in-progress worth Rs 38.2 crore and fixed assets of Rs 36.8 crore. The new subsidiary will support third-party manufacturers and contractors by providing hardware, software, and other services.
At present, top global electronic brands such as Samsung, LG, and Sony have research and development (R&D) operations in India, but these are mostly limited to hardware localisation of products and software development for global launches. Chinese phone manufacturers such as Oppo and Vivo have similar operations. Many American and European multinationals have set up global capability centres (GCCs) in India to insure tech and back office services, and conduct R&D.
Apple is also setting up the new India entity amid the ongoing economic conflict between the United States and China, which is expected to worsen with Donald Trump winning the presidential election. Tarun Pathak, director of research at market tracker Counterpoint Research, said Apple setting up a R&D unit in India is to take advantage of India’s technological skills rather than due to the US-China relations.
Apple has been setting a new sales record every quarter in India, as acknowledged by CEO Tim Cook in all the company’s earnings calls for the past several years. The company currently operates two company-owned stores in India and plans to soon open four more. Apple has also expanded its manufacturing operations in the country through three partners, making it now the country’s largest electronics exporter.
