Facility will support maps development
Apple (AAPL) is set to open its first technology development facility in India’s (EPI) IT (information technology) corridor of Hyderabad, next to facilities for Cognizant (CTSH), Infosys (INFY), and Microsoft (MSFT). According to a report from ZDNet, Apple will spend approximately $25 million on the project and will generate 4,500 jobs.
“We are looking forward to opening a new development office in Hyderabad that will be home to over 150 Apple employees supporting maps development,” Apple said in a statement issued to the India Times. “The office will also have space for many contractors who will support our ambitious efforts locally.”
Apple’s sales in India breached the $1 billion mark in March 2015. The company has been working with the Indian government to fast-track the construction of Apple stores in the country.
Will it help Apple’s profit margins?
Expanding in India will help AAPL to lower costs and improve profit margins. Apple can take advantage of lower labor costs and also reduce the prices of its devices in India. Google has also outlined a “huge new campus in Hyderabad” costing approximately $160 million.
In 2006, Apple planned to open a support center in Bangalore but did not go ahead with the plan.