NEW DELHI: Apple has achieved a record $8 billion in sales in India, underscoring the country’s status as a rapidly expanding market. Notably, the iPhone maker has significantly ramped up its production efforts in India over the past two years.
According to a recent report, Apple’s revenue in India surged by approximately 33% in the 12 months ending March, rising from $6 billion the previous year. The report also highlighted that Apple’s premium iPhones were responsible for more than half of these sales, reflecting the company’s growing influence in the world’s most populous nation, where consumer purchasing power is steadily increasing as the economy grows.
Apple is diversifying its manufacturing base to India from China due to geopolitical tensions. Although the company does not break out India revenue in its earnings statements, it is required to report annual sales in the country to local authorities. Interestingly, while India is one of the fastest-growing markets for Apple, it accounts for only about 2% of its latest fiscal-year sales of $383 billion.
Currently, Apple manufactures most of its devices, including the latest iPhone 15, in China, but it does not produce the higher-spec Pro and Pro Max models there. It exports most of the devices assembled in India. As a result, Apple now manufactures up to 14% of its flagship devices in India, or about 1 in 7 of its marquee products.
In the earnings call, Tim Cook, Apple’s CEO, mentioned that India is a crucial market where the company needs to manufacture to stay competitive. Cook described India as an incredibly exciting market and a major focus for Apple during the investor call for the second quarter ended March 2024.
In 2023, Apple opened the country’s first two Apple Stores, which sell iPhones, iPads, MacBook computers, and other devices and accessories. Meanwhile, Apple’s revenue in China shrank to $72.6 billion in the latest fiscal year as the economy cooled, though iPhone sales have rebounded strongly in recent months due to heavy discounting by retailers.