In the latest development, India will soon play an important role in the development of Apple’s new products, including research, design and testing.
Apple Sets First R&D Subsidiary In India
As we know that earlier this Cupertino-based company has incorporated a wholly owned subsidiary in India known as Apple Operations India.
The newly listed entity filed in a regulatory filing the procurement of engineering equipment, leasing of facilities, employing engineers for hardware development and providing failure analysis services to group companies, among its proposed activities.
Further, the Apple Inc has given ‘a letter of comfort,’ assuring it will provide “operational and financial support” till the “foreseeable future,” as informed by Apple Operations India in the filing with the Registrar of Companies (RoC) last week.
So far, Apple has not released any comment in this regard.
If Apple commences hardware design and testing in India then it will be a first for the country.
So far, the iPhone maker does R&D in the US, China, Germany and Israel.
This initiative also holds significance as it is the first time the Macintosh PC maker is setting up a direct subsidiary of the US parent in India.
Further the RoC said that the holding company of its existing sales and marketing entity, Apple India, is part of the European operations — Ireland-based Apple Operations International owns Apple India.
As we know that the manufacturing of Apple products in India is outsourced.
Significant Groundwork In India
This new subsidiary will support third-party manufacturers and contractors by providing hardware, software and other services, as per the filing.
It appears that Apple Operations India is laying significant groundwork in India with capital work-in-progress worth Rs 38.2 crore.
They have a fixed assets of Rs 36.8 crore, said Mohit Yadav, analyst and founder of business intelligence firm AltInfo in the RoC filing.
Further adding, “while the subsidiary is currently in its investment phase, its charter focusing on manufacturing support, procurement management, and R&D capabilities signals Apple’s strategic commitment to deepen its operational presence in India beyond just assembly and sales.”
Currently, top global electronic brands such as Samsung, LG and Sony have research and development (R&D) operations in India.
Although, they are mostly limited to hardware localisation of products and software development for global launches.
If we consider the Chinese phone, the manufacturers such as Oppo and Vivo have similar operations.
As we know, various American and European multinationals have set up global capability centers (GCCs) in India in order to insure tech and back office services, and conduct R&D.
