Apple’s strategic focus on India is yielding significant results, with the tech giant witnessing a 42% increase in revenue from India in 2023, reaching $8.7 billion, according to a recent analysis by Morgan Stanley. The surge in sales positions India as a pivotal market for Apple, outperforming individual European Union countries in iPhone business scale.
In 2023, iPhone shipments in India saw a remarkable 39% year-on-year growth, totaling 9.2 million units. This robust performance cements India’s status as the iPhone’s fifth-largest market globally, surpassing any single EU nation in terms of iPhone business size. India now accounts for 4% of global iPhone shipments and revenue, a significant climb from 3% in the previous year and just 1% five years ago. In contrast, China, another critical market for Apple, contributed to 20% of iPhone shipments and revenue in 2023.
Despite the impressive growth in India, the market size is not yet sufficient to fully counterbalance the declines observed in China. However, Morgan Stanley analysts suggest that if India maintains its current growth trajectory while China’s iPhone shipments remain stagnant, India could surpass China as a larger iPhone market by 2027.
A key factor driving this growth is the rising consumer demand in India for premium devices with enhanced storage capacity, rather than the newest models. The average iPhone sold in India in 2023 boasted approximately 260GB of memory, marking a 26% increase from the previous year. Additionally, the average selling price (ASP) of iPhones in India edged up by 2% year-on-year to $940 in 2023, although still below the global average of $1,045.
The most popular iPhone models in India last year included the iPhone 13, iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 15, collectively accounting for 86% of total sales in the country.
Apple’s continued investment in India, including the inauguration of its first two retail stores in the country and a gradual shift of iPhone manufacturing to India, underscores the nation’s critical role in Apple’s future growth strategy. Morgan Stanley projects that Apple’s revenue in India could soar to $40 billion by 2032, highlighting the immense potential of the Indian market for the tech giant.
Apple’s strategic expansion in India exemplifies the potential of emerging markets to drive significant growth for global tech companies. The company’s success in India not only showcases the increasing demand for premium smartphones in the region but also emphasizes the importance of diversifying manufacturing and retail operations to tap into new consumer bases. As Apple continues to solidify its presence in India, the trajectory of its growth presents a compelling case study for other companies looking to expand their global footprint.
