Times of India informed that Apple is scheduled to set up its first technology development centre outside the United States during the second half of this year in India’s Hyderabad city in Telangana state.
Apple to Set up its First Offshore Technology Development Facility in India
A senior Telangana state government official revealed that first a $25 million investment will be made in the structure, which will most probably hire almost 4,500 people.
“A Memorandum of Understanding will be signed after some approvals come… They’re [Apple] waiting for the SEZ approval [for the area] to come, which is expected to be given in a couple of days.”
Said Telangana IT Secretary Jayesh Ranjan.
According to a report, the facility is anticipated to start in June and is expected to be fully operational by the end of this year. Lately India has been advertised as a ‘bright spot’ in the market for iPhones, as Apple estimate its first revenue fall in 13 years on the back of cooling China sales.
Apple Chief Financial Officer Luca Maestri earlier said that sales of the company’s flagship smartphone mounted 76% in India from the year-ago quarter.
According to data compiled by Counterpoint Technology Research, Apple sold an assessed 800,000 iPhones in India in the fourth-quarter, its highest ever amount but one that is a fraction of the 28 million smartphones sold during that period. But still Apple’s high-end phones remain out of reach for most of the consumers.
“In many ways India is very similar to what China was a few years ago, but the middle class here is still very small and it can be two to three years before Apple gets a similar level of success in India.”
Counterpoint Technology Research analyst Tarun Pathak said in January.
Apple CEO Tim Cook earlier this year hit a more enthusiastic note, saying the company was “increasingly putting more energy” into India, mentioning a generally youthful population with increasing nonrefundable income as more people join the personnel.
Apple has already requested Indian government for a license to open its own retail stores just as the market appears to be turning in its courtesy.