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Apple picks north Bengaluru for design accelerator

Business Standard:  July 26, 2016

Bengaluru: Apple has identified a location in North Bengaluru, closer to the airport, to set up its design and development accelerator. It joins rivals such as Google and Microsoft in harnessing local talent in the country's technology capital.

Through this centre, Apple hopes to encourage more developers to build applications for its iPhone, a strategy for it to justify the high sticker prices for its devices. Globally, such apps are considered of gold standard because of the customers' ability to pay more.

India, the world's second largest smartphones market, is dominated by Google's Android software. Apple expects to wean a slice of the high-paying customers of Android to its own ecosystem.

Apple is also looking at India as a strategic market since iPhone sales in China and the US stagnate. "India is home to one of the most vibrant and entrepreneurial iOS development communities in the world," said Tim Cook, Apple's chief executive officer. "With this new facility, we're giving developers access to tools which would help them create innovative apps."

The decision to locate in Yelahanka in Northern Bengaluru goes against the conventional grain for global technology majors.

Through this centre, Apple hopes to encourage more developers to build applications for its iPhone, a strategy for it to justify the high sticker prices for its devices

These majors have set up offices in and around Whitefield, outer ring road and Sarjapur - a hub which has witnessed nearly a fifth of the country's office absorption in the past few years.

The Economic Times reported Apple finalising its office in RMZ Galleria, first on Monday.

This would be the second comeback for Apple, a secretive company, which backed out of setting up a development centre in Bengaluru a few years ago after newspaper reports.

It also shut its call centre operations, outsourced to a local firm, after complaints of poor service from customers.

Northern Bengaluru is becoming attractive to locate offices for global organisations such as IBM and ABB. This is mainly because of it being on the outskirts of the central business district and its proximity to the airport.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.