For years, Apple has maintained its position as a prominent player in the worldwide smartphone market, with key markets in countries like the US, the UK, and China. Despite being a recent focal point for Apple’s production relocation, India has traditionally lagged behind in terms of iPhone market adoption. However, a notable shift is underway, and in the second quarter of 2023, India achieved a significant milestone by becoming Apple’s fifth-largest market for iPhones, surpassing both Germany and France for the very first time.
Based on a report by Counterpoint Research, during the June quarter, India emerged as the fifth-largest market for iPhones. This achievement coincided with Apple’s intensified efforts in distribution and marketing within the country, the establishment of two retail outlets, and a surge in Apple product sales in the world’s second-largest internet market. With Cupertino’s strategic emphasis on expanding its smartphone market share in India, which is predominantly dominated by low-cost Android devices, the country shows promising potential for even greater sales growth in the future.
Ankit Malhotra, a senior research analyst at Counterpoint Research, attributed the iPhone maker’s success in India to a well-rounded strategy that centers on distribution and affordability. He further emphasized that Apple has effectively capitalized on the expansion of the premium market in India, positioning itself to leverage the growth opportunities within the segment.
Currently, India holds the position behind the U.K., Japan, China, and the U.S. in terms of iPhone sales. Notably, the country experienced a remarkable 50% year-on-year growth in iPhone sales during the June quarter, contributing nearly 4% of the global iPhone sales volume in that period. Several factors have played a significant role in elevating India’s significance for Apple. The rapid growth of the Indian economy has led to the expansion of the middle class, thereby fueling rising demand for premium smartphones, including the iPhone.
In recent years, Apple has significantly increased its focus on India. Notably, the company has established its first two retail stores in the country and expanded its distribution network. Additionally, Apple has taken steps to enhance affordability for Indian consumers, making its products more accessible. The Indian government’s efforts to facilitate foreign business operations have further attracted Apple’s investments in the country. Consequently, the tech giant has shifted some iPhone manufacturing from China to India, with the aim of offering locally-manufactured iPhones to Indian consumers in the future.
As of June 2023, Apple’s market share in India has risen to 5.1%, a notable increase from the 3.4% market share it held during the same period the previous year. Despite this progress, the Indian smartphone market remains largely dominated by Chinese vendors and low-cost Android smartphones, with the majority of devices powered by Google’s Android operating system.
