Apple Inc. is making significant strides to enhance its footprint in India’s burgeoning smartphone sector. The tech giant recently announced plans to open four additional retail stores across major cities, including Bengaluru, Pune, Delhi-NCR, and Mumbai. This move reflects a clear strategy to tap into the fervent demand for its products in the world’s second-largest smartphone market. As a part of its expansion, Apple is building on the foundation established with the opening of its inaugural stores in Mumbai and New Delhi last year. Deirdre O’Brien, Apple’s senior vice president of Retail, expressed enthusiasm about expanding their retail presence, emphasizing how inspired the company is by the creativity and zeal of Indian customers.
In tandem with its retail expansion, Apple has confirmed that it has commenced production of its iPhone 16 Pro models domestically—a significant development in their ongoing strategy to localize manufacturing. Since initiating production in India in 2017, starting with the iPhone SE, the company has gradually shifted a larger portion of its manufacturing capabilities to the region. This transition represents a shift in corporate strategy; Apple aims to diversify its production landscape away from China, catering to the emerging opportunities in India’s vibrant market. Apple’s efforts are particularly crucial as analysts from J.P. Morgan have noted that while the transition is underway, it is not progressing at the anticipated pace, thereby indicating potential challenges in achieving earlier forecasted production levels.
Despite Apple’s manufacturing hurdles, its business momentum in India is undeniable. Recent reports highlight a staggering 42% year-on-year growth in revenue, reaching $8.7 billion in 2023. Additionally, shipments of iPhones soared, with a remarkable 39% increase bringing total shipments to 9.2 million units. This growth has catapulted India into the position of being the fifth-largest market for iPhone globally, surpassing even some European Union countries. The surge in sales is a testament to the increasing consumer acceptance and demand for high-end smartphones, showcasing Apple’s strong brand appeal in the region.
Looking ahead, Apple is set on maintaining and expanding its influence within the Indian smartphone market, despite the challenges of shifting supply chains and local manufacturing. Analysts predict that by 2027, 20-25% of iPhones could be produced in India—a timeline that has been extended from previous estimates. This long-term vision suggests that Apple understands the strategic importance of India not only as a market but also as a manufacturing hub, crucial for future growth. As consumers increasingly lean towards technologically advanced devices, Apple’s investments in India may yield substantial long-term benefits.
Apple’s expansion in India represents a calculated evolution in its global strategy, balancing the ambition of growth with the realities of operational complexities. As the company fortifies its retail presence and local manufacturing capabilities, it stands poised to capture a larger piece of the market while reinforcing its brand in one of the world’s most dynamic economies.