India emerges as Apple’s fifth-largest iPhone market for the first time
Apple's rapid growth in India is a result of the company's increased focus on expanding its presence, with emphasis on both retail and manufacturing operations.
According to a research, India has emerged as Apple’s fifth-largest iPhone market during the second quarter. The U.S. tech giant, under the leadership of CEO Tim Cook, has been actively expanding its distribution and marketing efforts in India, considering it a crucial future market.
In the June quarter, India surpassed both Germany and France in terms of iPhone sales and is currently ranked behind the U.K., Japan, China, and the U.S. This is the first time India has achieved a position among Apple’s top five markets for iPhone sales.
Counterpoint Research, the firm conducting the study, reported that India contributed nearly 4% of all iPhone sales in the second quarter, with a remarkable year-on-year growth of 50%. Furthermore, Apple’s overall market share in India’s smartphone market rose to 5.1% during the period ending in June, up from 3.4% in the same period the previous year.
Apple’s rapid growth in India is being supported by its increased presence in both retail and manufacturing sectors. In a significant move, Apple opened its first physical stores in the country in Delhi and Mumbai in April.
As part of its strategy to reduce reliance on China as its primary manufacturing hub for flagship smartphones, Apple has shifted some of its iPhone production to India. This move allows the company to diversify its manufacturing operations and tap into India’s potential as a significant market.
In India, the smartphone market is dominated by affordable Android smartphones, primarily made by Chinese companies like Xiaomi, along with Apple’s main competitor, Samsung. However, there has been a notable increase in the premium smartphone segment in the country. The proportion of smartphones priced above $400 has risen to 10% of the total shipped handsets, compared to 4% before the Covid-19 pandemic, as reported by Counterpoint Research.
Apple’s success story in India is a result of its comprehensive strategy focused on distribution and affordability, according to Ankit Malhotra, a senior research analyst at Counterpoint Research. The growth of the premium market in India has presented an opportunity that Apple has effectively capitalized on.
Analysts are optimistic about Apple’s prospects in India. Morgan Stanley, in a recent note, suggested that Apple’s revenue growth in the country could account for 15% of the company’s overall revenue growth in the next five years. The investment bank forecasts Apple’s revenue growth in India over the next decade to reach $40 billion, indicating the significant potential for growth in this important market.
