Apple’s India gambit pays off as revenue jumps 33% to $8 billion amid China woes
In an attempt to take advantage of the Indian market, Apple has been steadily growing its manufacturing footprint here.
Over the previous year, Apple’s sales in India have increased by 33 percent, setting a record high of around $8 billion for the year that ends in March 2024. The company’s efforts to diversify its manufacturing and revenue sources outside of the much larger but more unstable Chinese market are evident in this excellent rise.
With iPhones making up over half of the sales, India’s revenue increased from $6 billion to $8 billion annually. This indicates that Apple’s aim to win over customers in the most populous country in the world is steadily progressing, as the country’s growing middle class increasingly sees Apple products as status symbols.
“I see it as an incredibly exciting market and it’s a major focus for us,” Apple CEO Tim Cook said on the company’s earnings call in May. Cook visited India last year to inaugurate Apple’s first two flagship retail outlets, demonstrating his commitment to the nation.
Apple’s Sales Surge in India
The rise in Apple’s sales in India coincides with the company’s struggles in China, where the slowing economy caused revenue to drop to $72.6 billion in the most recent fiscal year. Apple and other international tech companies are shifting their focus more toward India as the next significant growth market as a result of the tensions between the US and China.
In an attempt to take advantage of the Indian market, Apple has been steadily growing its manufacturing footprint here. It now manufactures the most recent iPhone models, the iPhone 15, but not the more expensive Pro or Pro Max models. The majority of the smartphones are exported after being built in India. In the most recent fiscal year, Apple’s assembly partners in India increased iPhone production to $14 billion.
This indicates that Apple is less dependent on China as it currently produces up to 14%, or roughly 1 in 7, of its flagship products in India. To lessen its reliance on China for sales, the corporation is aiming its products toward the country’s constantly growing middle class, which sees Apple items as status symbols.
Despite the remarkable rise, just 3.5% of India’s approximately 690 million smartphones are iPhones; the majority of the market is still controlled by less expensive Chinese handsets that run Google’s Android operating system. However, Apple is prioritizing India as it looks to expand its revenue streams and worldwide footprint.
Since opening in 2023, the flagship locations in Mumbai and New Delhi have regularly generated monthly sales of $2–2.5 million each. Customers now frequently visit the stores to receive a hands-on look at Apple products and get their questions addressed by friendly employees.
Apple set up Production in India to meet local sourcing criteria and benefit from lower labor costs. Apple benefits from lower import costs as well as a competitive edge in the Indian market thanks to this move. With a middle class that is gradually developing and a population of over 1.4 billion, India presents a sizable and expanding market for Apple products.
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