Apple’s Successful Long-Term Bet on India
After years of investing in the Indian market, Apple is finally seeing its efforts pay off. According to a recent note from Morgan Stanley, the tech giant’s iPhone revenue in India saw an impressive 42% year-on-year jump in 2023, reaching $8.7 billion. This growth is a testament to India’s growing importance as one of Apple’s top markets.
The company’s iPhone shipments in India also saw a strong 39% increase in 2023, with a total of 9.2 million units sold.
In fact, India is now the fifth largest market for iPhones, surpassing many European countries in terms of revenue. This is a significant milestone for India, as just 5 years ago, it only represented 1% of iPhone shipments and revenue. Today, that number has grown to 4%, and analysts predict it will continue to rise.
- India represented 4% of iPhone shipments and revenue in CY23 (up from 3% in CY22 and 1% 5 years ago).
- China represented 20% of iPhone shipments and revenue in CY23 (down 1-2 points Y/Y, respectively).
According to analysts, if India maintains its current trajectory of growth while China remains stagnant, India could even surpass China as the top market for iPhones by 2027. This is a remarkable achievement that showcases the potential of India’s market and its growing demand for premium devices.
The increase in India’s iPhone demand is mostly driven by consumers looking for more storage capacity rather than the latest models. In fact, the average iPhone sold in India last year had a storage capacity of around 260GB, which is a 26% increase from the previous year. Additionally, India’s iPhone average selling prices (ASPs) also saw a growth of 2% year-on-year, reaching $940 in 2023.
Even with this impressive growth, India’s iPhone ASPs still trail behind the global average of $1,045, highlighting the potential for further growth in the market. Data from research firm IDC, cited by Morgan Stanley, shows that the top five iPhone models in India were the iPhone 13, iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 15. These models made up 86% of total sales in the country, indicating a strong demand for both new and older iPhone models.
Apple’s focus on India as a major growth engine is evident with its recent decision to open its first two retail stores in the country. The company is also shifting its iPhone manufacturing to India, a move that is estimated to contribute to $40 billion in revenue by 2032, according to Morgan Stanley.
In conclusion, Apple’s long-term investment in India is proving to be a wise decision, as the country’s growing demand for premium devices continues to drive iPhone sales and revenue. With its solid market position and potential for further growth, India is set to become a key market for Apple in the coming years.
