In a move to strengthen its presence in India and diversify its supply chain and research outside of China, Apple has set up its first-ever research and development (R&D) subsidiary in the country. This new facility will focus on research, design, testing, and supporting third-party manufacturers.

The establishment of this R&D center is significant for Apple as it aims to connect more effectively with local manufacturers and original equipment manufacturers (OEMs). This will also allow Apple to develop products and solutions tailored specifically for the Indian market.

Currently, Apple operates R&D facilities in countries like the US, China, Germany, and Israel. However, the company did not immediately comment on its specific plans for R&D in India.

Prabhu Ram, Vice President of the Industry Research Group at CyberMedia Research (CMR), believes India has the potential to play a major role in Apple’s future growth, just as China did in the past. "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 drive the next wave of innovation, catering to the aspirations of Indian consumers and beyond," Ram said.

In addition to its R&D expansion, Apple is accelerating its manufacturing plans in India and Vietnam. With supportive local manufacturing policies and an improved business environment, Apple's ‘Make in India’ iPhones have achieved record-breaking export numbers.

Apple is also expanding its retail footprint in India, with plans to open four more branded retail stores, according to CEO Tim Cook. "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," said Cook during the company’s Q4 fiscal year 2024 earnings call.

Apple's success in India is evident from its impressive export figures. The company is on track to surpass its fiscal year 2024 export numbers, with over Rs 50,000 crore (approximately $6 billion) in exports during the first six months of the fiscal year 2025. In fact, iPhone exports from India surged to over $10 billion in 2023-24, a significant increase from $6.27 billion in the previous year. Overall, Apple’s operations in India reached a value of $23.5 billion in the last fiscal year, with $14 billion worth of iPhones assembled in India.

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