Apple has made a significant commitment to the Indian market by announcing the opening of four new retail stores across major cities such as Bengaluru, Pune, Delhi-NCR, and Mumbai. This initiative is particularly noteworthy as it builds on the company’s earlier ventures in the region, with two stores already established in Mumbai and New Delhi. As Apple continues to solidify its presence in India, this expansion reflects the brand’s acknowledgment of the country’s burgeoning consumer base and the increasing demand for its high-end technology. Deirdre O’Brien, Apple’s Senior Vice President of Retail, expressed excitement about the potential to engage more deeply with the Indian population, emphasizing the unique creativity and passion of Indian customers. Such engagement is crucial in a market that is characterized by a youthful demographic that is eager for new technology.
In addition to expanding its retail operations, Apple has also begun the domestic manufacturing of the iPhone 16 Pro models in India. This transition marks a critical step in Apple’s strategy to mitigate dependence on China for production. Since initiating iPhone manufacturing in India in 2017 with the iPhone SE, Apple has progressively scaled its operations in the region. However, reports from J.P. Morgan suggest that the shift in production is not advancing as swiftly as expected, with predictions of 20-25% of all iPhones being manufactured in India by 2027—later than earlier projections that aimed for 2025. Currently, it is estimated that Indian facilities contribute around 10-15% of global iPhone output.
Apple’s investments in India are not just limited to retail and manufacturing; the company’s overall business performance in the country has been impressive. According to Morgan Stanley, Apple’s revenue in India experienced a remarkable year-on-year increase of 42% in 2023, totaling approximately $8.7 billion. Furthermore, iPhone shipments surged by 39%, reaching 9.2 million units. This growth has positioned India as Apple’s fifth-largest smartphone market globally and highlights the country’s potential as a significant player in Apple’s global strategy. Notably, the performance in India has outpaced that of standalone countries within the European Union, further underscoring the strategic importance of the Indian market.
As Apple continues to navigate its expansion in India, several challenges and opportunities lie ahead. The company must grapple with local competition, varying consumer preferences, and the evolving technological landscape. Nevertheless, by establishing a robust retail and manufacturing presence, Apple is well-positioned to capitalize on the region’s potential growth. With plans for further store openings and the commitment to local production, Apple seems determined to solidify its status in India, which may very well become a cornerstone of its global strategy over the coming years. The future looks promising for Apple in India as it embraces the distinct attributes of this dynamic market.