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Apple Considering a Technology Development Center in India

10A. NEWS - RUMOR

According to a report from India, Apple is evaluating options to set up a company-owned technology development center in India, which, if it happens, will rank as a significant endorsement of the country's software engineering prowess.

 

A person familiar with situation stated that Apple was in the "early stages" of evaluating the move. It was also noted that Bob Kupbens, a former executive with US retailer Target and Delta Air Lines, who is now a vice-president at Apple Online Retail, was the man evaluating the options. Kupbens has past knowledge about India, having overseen strategy and execution at Target's captive technology development and BPO centre in Bengaluru while at the Minneapolis-based retailer.

 

Whether Apple is evaluating a technology development center or the possibility of Apple's First flagship Apple Store is unknown at this time.

 

While Apple is struggling in India with about 2% market share (prior to the iPhone 6), Samsung is looking to build their third plant in India to solidify their slim lead in that market with a 22% market share. Not that their Indian market share position has helped Samsung's bottom line against Apple in Q4 2014, but longer term Samsung is making the investment to win over that market.

 

Apple's priority at the moment is being able to deepen their market penetration in China where they just opened 5 flagship stores this quarter and plan even more store openings later this year.

 

China is the largest of the BRIC Countries (Brazil, Russia, India and China). Apple exploring the opening of a technology development center and/or their first flagship store in India could be marking the beginning of a new strategy for Apple in India. For now however, while it's a positive rumor, it's still a rumor nonetheless.

 

In the shorter run, Apple's next cutting edge R&D Center will be built in Japan, according to a report that surfaced in December.

 

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