Apple’s First Direct Subsidiary In India To Power Tech Giant's R&D And Engineering Efforts

India is reportedly set to play a part in the development of new Apple products, including research, design, and testing.

The technology giant, headquartered in Cupertino, has created a wholly-owned subsidiary in India named Apple Operations India, Economic Times reported.

According to regulatory filings, the entity, among other things, plans to procure engineering equipment, lease facilities, hire engineers for hardware development, and provide failure analysis services to Apple’s group companies.

Apple Inc has given ‘a letter of comfort,’ assuring it will provide “operational and financial support” till the “foreseeable future,” Apple Operations India said in the filing with the Registrar of Companies (RoC) last week.

Apple has given a “letter of comfort” assuring it will provide “operational and financial support” for the “foreseeable future,” Apple Operations India said in the filing with the Registrar of Companies (RoC) last week.

If the company proceeds with hardware design and testing in India, it would mark a first for the country.

Currently, Apple conducts its research and development activities in the US, China, Germany, and Israel.

Additionally, this is Apple’s first direct subsidiary of its US parent company established in India, with the existing sales and marketing branch, Apple India, remaining under its Ireland-based holding company, Apple Operations International.

Manufacturing of Apple products in India is outsourced and the new subsidiary will support third-party manufacturers and contractors by providing hardware, software and other services, said the filing.

Apple 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, according to the RoC filing.

Currently, major electronic brands like Samsung, LG, and Sony operate R&D facilities in India, primarily concentrating on hardware localisation and software development tailored for global launches.

Similarly, Chinese smartphone brands like Oppo and Vivo also have such operations in the country.

Several American and European multinational companies have established Global Capability Centres (GCCs) in India to insource tech and back office services, and conduct R&D.

The establishment of Apple’s new entity in India comes amid escalating economic tensions between the United States and China, which is expected to intensify following Donald Trump’s presidential election victory.

According to the memorandum of association filed with the RoC, Apple Operations India will engage in the business of procuring, developing, manufacturing, supporting and other related operations, such as “undertaking 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.”

The memorandum also mentions that the entity will provide a variety of “equipment, instruments, components and systems, technical, electronic, mechanical, software or otherwise, by way of lease, hire, or otherwise, to third-party manufacturers and/or contractors".

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