(Photo : www.apple.com)

• Apple is expanding its R&D operations to India, aiming to strengthen connections with local manufacturers and create India-specific products.
• The tech giant is also fast-tracking its manufacturing plans in India and Vietnam, with four more retail stores set to open in India.
• This expansion is part of a broader trend of tech companies diversifying their supply chains and research outside of China.
• Apple's move signifies the growing importance of India in the global tech ecosystem and could potentially fuel the next wave of innovation.

Apple, the globally recognized tech giant, is making a significant move in its diversification strategy by expanding its research and development (R&D) operations to India. This strategic decision is expected to strengthen Apple's connection with local manufacturing ecosystem players and original equipment manufacturers (OEMs), facilitating the creation of India-specific products and solutions.

The establishment of an R&D facility in India is a significant move that industry players believe will fuel the next wave of innovation. Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR), stated that just as China powered Apple's growth in the past, India is poised to do the same over the next decade. He emphasized that robust R&D operations are key to this growth, not just retail and marketing.

Apple's Manufacturing Plans in India and Vietnam

In addition to R&D, Apple is also fast forwarding its manufacturing plans in India and Vietnam. Apple's 'Make in India' iPhones are breaking all previous export records, thanks to the ease-of-doing business and friendly local manufacturing policies. The company is set to open four more own-branded retail stores in India, according to its CEO Tim Cook.

Cook expressed his excitement about the enthusiasm they're seeing in India, where they set an all-time revenue record. He stated, "We can't wait to bring four new stores to customers in India. We're passionate about education and believe technology has a vital role to play in both helping teachers to inspire their students and students to learn about the world around them."

The Broader Trend of Tech Companies Diversifying

Apple's expansion in India is a part of a broader trend of tech companies diversifying their supply chains and research outside of China. This trend has been influenced by various factors, including the ongoing trade tensions between the U.S. and China, the COVID-19 pandemic's disruptions on supply chains, and the growing attractiveness of other markets in Asia.

For instance, Taiwan's Foxconn, a major assembler of Apple's iPhones, announced in 2020 that it would move some of its iPad and MacBook assembly to Vietnam at the request of Apple to minimize the impact of the U.S.-China trade war. In 2021, iPhone assembler Wistron similarly moved 50 percent of its production outside of China to India and Vietnam.