Apple sets up first design and R&D subsidiary in India

As Apple continues expanding its manufacturing footprint in India, the tech giant is now preparing to establish research, development, and design operations in the country to increase local value addition and leverage India’s strong engineering talent.

The iPhone-maker recently registered a new subsidiary, Apple Operations India, which is set to handle procurement management, manufacturing support, and various R&D activities, as per its filings with the Registrar of Companies. This subsidiary will focus on areas such as science, engineering, technology, information technology programming, and technical testing and analysis.

Currently, Apple’s design operations are cantered in locations like the United States, China, and Israel, with no existing design base in India. However, the Indian government has been actively encouraging companies like Apple to conduct R&D and design activities locally, aiming to foster a more comprehensive electronics ecosystem. India has already emerged as a major design centre for global electronics companies, particularly in the semiconductor industry, though most smartphone companies still rely on foreign design hubs.

A senior government official commented that having R&D and design units in India would significantly contribute to local value addition and support India’s expanding electronics sector. As companies like Apple increase their assembly operations in India, the addition of design and research units would enhance the country’s role within the global technology research landscape.

Apple’s commitment to India has been steadily growing, with extensive assembly operations and flagship stores now established. As a participant in the government’s Production Linked Incentive (PLI) scheme for mobile manufacturing, Apple has built a substantial production base for iPhones in India.

The Economic Survey 2023-24 reports that India assembled iPhones worth $14 billion in FY 2024, making up 14% of Apple’s global iPhone production. These iPhones, produced by Apple’s partner Foxconn, are sold domestically and exported abroad.

In 2023-24, India’s smartphone exports reached around $15 billion, with iPhones accounting for about 65% of that figure, or roughly $10 billion—double the previous year’s exports.