Apple Builds First R&D Subsidiary In India

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SUMMARY

Apple has set up a new subsidiary in India, which will focus on research, design, testing and providing support to third party manufacturers

This also marks the company’s first direct presence in the country

The development comes at a time when Apple has actively diversified its production outside of China amid geopolitical tensions between Beijing and Washington DC

Tech giant Apple has set up a new subsidiary in India, Apple Operations India, which will focus on research, design, testing and providing support to third party manufacturers.

This also marks the company’s first direct presence in the country.

A regulatory filing by the new entity listed procurement of engineering equipment, leasing of facilities, hiring engineers for hardware development and providing failure analysis services to group companies, ET reported.

Apple Inc. has issued a “letter of comfort” to assure its “operational and financial support” for Apple Operations India for the “foreseeable future,” according to a recent filing with the Registrar of Companies (RoC). Should the iPhone maker proceed with hardware design and testing in India, it would mark a first for the country, as Apple’s R&D activities are currently based in the US, China, Germany, and Israel.

The holding company for Apple’s current sales and marketing arm in India, Apple India, is part of its European operations—specifically, Ireland-based Apple Operations International, as per the filing.

The report further added that Apple Operations India is establishing a substantial base in India, with INR 38.2 Cr in capital work-in-progress and INR 36.8 Cr in fixed assets.

Mohit Yadav, founder of business intelligence firm AltInfo, noted that the subsidiary’s focus on manufacturing support, procurement, and R&D reflects Apple’s intent to expand its operations in India beyond assembly and sales.

The development comes at a time when Apple has actively diversified its production outside of China amid geopolitical tensions between Beijing and Washington DC. This pivot to India also comes on the back of hefty production linked incentives (PLIs) and other sops offered by the Centre.

To produce iPhones in India, Apple has partnered with Foxconn, Pegatron, and Tata-owned Wistron.

Recently, Apple announced plans to begin initial manufacturing of the iPhone 17 base model in India, partnering with a local factory for this production.

The introductory production of the standard iPhone 17 is expected to begin in India in the latter half of 2025.

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