According to a report by American firm Morgan Stanley, Apple, the US-based iPhone maker, has witnessed a remarkable surge in its financial performance in India, with revenues soaring by nearly 42% to reach $8.7 billion in 2023.
Rapid Growth and Market Importance
The growth is reflected in iPhone shipments as well, which saw a substantial increase of approximately 39% to 9.2 million units. Analysts from Morgan Stanley emphasize the growing significance of the Indian market for Apple, with India accounting for 4% of iPhone shipments and revenue, a significant rise from 3% in 2022 and merely 1% five years earlier.
Outpacing Competitors and Record-Breaking Performance
Apple achieved a record-breaking revenue quarter in India during the December quarter of 2023. Moreover, for the first time, Apple led in revenue among smartphone brands in India for a calendar year, surpassing the 10-million-unit mark in shipments despite the overall smartphone shipments in India remaining flat at 152 million units.
Potential Shift in Global Market Dynamics
Morgan Stanley’s report suggests a potential shift in the global market landscape, speculating that if India continues its current growth trajectory while China’s iPhone shipments remain stagnant, India could overtake China as a larger iPhone market by 2027. This forecast underscores the strategic importance of India in Apple’s global market strategy and its potential as a key player in the company’s future growth.
Government Policies and Local Manufacturing
The Indian government’s initiatives to promote local manufacturing, such as reducing import duties on mobile phone parts from 15% to 10% in January, directly benefit companies like Apple. These policies aim to make high-end premium smartphone manufacturing more viable in India, aligning with Apple’s strategy to expand its production footprint in the country.