The latest industry data reveals a significant surge in iPhone shipments in India, with a remarkable growth rate of 28% in 2023. Apple’s market share in India expanded from 4% in 2022 to over 6% in 2023, driven by the prevailing trend of premiumization in the country’s smartphone market. This growth trajectory underscores Apple’s enduring potential for long-term expansion in India, positioning the country as a crucial growth market for the tech giant.
Strong Performance in Q4 2023
In the fourth quarter of 2023 alone, iPhone shipments in India witnessed a notable 7% growth, according to data from CMR. This performance highlights Apple’s measured progress and strategic advancements in a pivotal growth period for the company within the Indian market.
Prabhu Ram, Head of the Industry Intelligence Group at CMR, emphasizes the significance of this growth, stating that India is poised to drive Apple’s growth over the next decade, akin to the role China played in the previous one. The success of iPhone 15, propelled by the increasing premiumization trend in India, signifies the effectiveness of Apple’s affordability initiatives and targeted retail strategies in appealing to a broader spectrum of Indian consumers.
Localization Initiatives and Manufacturing Milestones
As India intensifies its focus on local manufacturing, Apple achieved a significant milestone by assembling iPhones worth over Rs 1 lakh crore in India in 2023. This localization effort, undertaken as part of the production-linked incentive (PLI) scheme, not only strengthens Apple’s manufacturing capabilities but also contributes to India’s mobile phone exports.
Industry sources suggest that the actual market value of iPhones manufactured or assembled in India could surpass the reported figure, depending on tax considerations in other countries. Led by Apple, India is expected to surpass $15 billion in mobile phone exports in the current fiscal year, marking a substantial 35% growth over the previous fiscal year.
Revenue and Profit Growth
Apple’s financial performance in India reflects its growing prominence in the market, with revenue reaching nearly Rs 50,000 crore in fiscal year 2023. Sales surged by 48% to Rs 49,321 crore, accompanied by a remarkable 76% increase in net profit to Rs 2,229 crore. This represents the fastest growth in net profit for Apple in India over the past five years, underscoring the company’s accelerating momentum and robust market presence in the region.
In summary, Apple’s remarkable growth in India in 2023, fueled by strategic initiatives, localization efforts, and a strong product portfolio, positions the country as a key driver of Apple’s global growth strategy in the coming years.
