Apple’s decision to invest in India is a reflection is of the strategic importance that Apple attaches to it since by investing in the world’s third largest smartphone market, it can not only boost its market share in but also tap its software engineering pool.
As per two sources who are familiar with the matter at hand, with just hours left before Tim Cook’s impending maiden visit to the Indian subcontinent, Apple is set to announce the expansion of its software development centre in India as well as an announcement to build an accelerator program for local start-ups.
Cook’s visit to India is of strategic nature as the smartphone market has largely been saturated in China and in the United States while India has emerged as one of the largest growing markets in the world.
As per an official, Cook is also scheduled to meet the Indian Prime Minister, Narendra Modi, sometime later this week.
More than 100 million smartphones have been sold in India in 2015, and this growth projector is set to grow by 25% this year. Apple’s smartphones currently have a market share of just 2% but is growing at a significant rate – in the first three months of 2016, iPhone sales grew by 56%.
India’s bubbling software talent is attracting global software giants to invest in its stable economy. Like Microsoft, Apple has opened a development centre in the Southern Indian state of Hyderabad, where software engineers are working on Apple Maps.
As per a source, Apple is expected to announce plans for s startup accelerator program in India and hopes to work more closely with the software development community that is churning out apps for its iOS and OS X platforms.
“Cook’s visit shows how important India has become for Apple and will likely set the stage for the expansion of Apple ecosystem in India,” said Vishal Tripathi, research director at Gartner.
Sources did not reveal the quantum of fresh investments, Apple plans on infusing into the Indian economy.
An spokesman for Apple declined to comment.
As per a source in the Indian government, Modi is likely to impress upon Cook to invest in new production facilities in India, which will be in line with its Make in India efforts. Furthermore, with the country churning out millions of engineers every year, Apple could tap this emerging workforce.
Already Apple is holding separate talks to open its first official retail store in India – the world’s third largest smartphone market.
As per a source, Cook’s visit could run into the weekend and may include meeting with industry partners.
On Friday, Cook is expected to meet Sunil Mittal, the founder of India’s largest mobile operator, Bharti Airtel.
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