July 15, 2024 – Apple Inc. has achieved a remarkable milestone in India, with its annual sales soaring to a record-high of nearly $80 billion, underscoring the significance of this rapidly expanding market. The tech giant has intensified its presence in the country by assembling more devices locally and establishing two flagship stores, marking a strategic shift towards diversification in manufacturing and revenue streams.
According to a well-informed source, Apple’s revenue in India surged approximately 33% during the 12-month period ending March, leaping from $60 billion in the previous year. Notably, the premium iPhone series accounted for more than half of these sales, underscoring the appeal of Apple products among an increasingly affluent Indian consumer base.
This growth trajectory underscores Apple’s steady progress in capturing the hearts and wallets of consumers in the world’s most populous nation. As India’s economy expands, purchasing power is on the rise, positioning the country as a vital cog in Apple’s global diversification strategy.
While Apple does not segregate India’s revenue in its financial reports, local regulations mandate disclosure of annual sales figures to the Indian government. Despite this notable achievement, India remains a niche market for Apple, accounting for roughly 2% of the company’s $383 billion in sales during its most recent fiscal year, according to Counterpoint Research. This is in stark contrast to the dominance of cheaper Android devices from Chinese manufacturers, which occupy over 96% of India’s smartphone landscape, with approximately 690 million active devices.
CEO Tim Cook is determined to alter this narrative. His recent visit to India saw the opening of the country’s first two Apple Stores, showcasing a range of products including iPhones, iPads, MacBooks, and accessories. As India’s expanding middle class views Apple products as status symbols, this move could gradually reduce the company’s reliance on sales in China.
Although Apple’s revenue in China dipped to $72.6 billion in the last fiscal year, iPhone sales have staged a robust comeback in recent months, fueled by hefty discounts from retailers.
Concurrently, Apple is rapidly expanding its manufacturing footprint in India. The latest iPhone 15 models are now being produced in the country, albeit excluding the higher-end Pro and Pro Max variants. The majority of these locally assembled devices are exported globally, with Bloomberg News previously reporting that Apple’s Indian manufacturing partners doubled iPhone production to $14 billion last fiscal year, representing approximately 14% or one-seventh of total iPhone output.
During Apple’s fiscal Q2 earnings call in May, Cook emphasized the company’s commitment to enhancing every aspect of its operations in India, including developer relations, market presence, and operational efficiency. “I believe this is an incredibly exciting market, and one that we’re deeply focused on,” he said, highlighting the potential for further growth and innovation in the region.
