In a world where affordability often trumps loyalty, presence of Apple in India marks a surprising shift. The tech giant, known for its premium pricing, is not just surviving but thriving in a market where budget-friendly options have traditionally ruled. Apple’s strategy in India is a blueprint for how a company can reshape an entire industry, benefiting not just itself but also its partners and the broader economy.
Growth of Apple in India
India’s affection for Apple is growing stronger every day. Recently, Apple’s business in India surpassed ₹2 lakh crore in value, a figure that is more than 1% of India’s real GDP. This growth reflects a significant change in consumer behavior. While affordable Android phones have long been the go-to for most buyers, there’s a growing segment of the population now leaning towards premium options like iPhones.
The numbers tell a clear story. Apple India’s revenue has skyrocketed, jumping from ₹10,538 crore in FY19 to approximately ₹68,000 crore in FY24. This sixfold increase underscores a major shift in the market. According to Counterpoint Research, Apple captured a record 6% market share in India during the first quarter of 2024. While this might seem small compared to Apple’s global dominance, it’s a significant leap from just 2% in FY18.
This growth isn’t just about numbers; it’s about Apple’s approach, particularly its involvement in the ‘Make in India’ initiative, which is paving the way for an even stronger presence in the country.
Made in India: The Backbone of Apple’s Strategy
Apple’s interest in India isn’t just about selling more iPhones; it’s about creating a sustainable ecosystem. The company has opened its first retail stores in major cities like Mumbai and Delhi, signaling its commitment to the Indian market. But beyond sales, Apple is looking to India as a critical manufacturing hub, reducing its reliance on China.
The Indian government’s Production Linked Incentive (PLI) scheme has been a game changer for Apple and its manufacturing partners like Foxconn, Wistron, and Pegatron. These companies have not only met but exceeded expectations, making India a key part of Apple’s global supply chain. By manufacturing in India, Apple has managed to lower costs, avoid import duties, and offer more competitive prices. This benefits India too, boosting its manufacturing sector and creating jobs.
Foxconn is a standout example. According to reports, Foxconn’s business in India has surpassed ₹10,000 crore in investments. India now contributes about 14% of Apple’s global production, with almost 7% of its global exports coming from the country in FY23. Apple exported around ₹1.35 lakh crore worth of iPhones from India last year, making it the top exporter in the country. This rapid growth in manufacturing and exports is not just a win for Apple but also for its local partners, like Foxconn.
Beyond iPhones: Expanding Ecosystem of Apple in India
While iPhones remain Apple’s most popular product, accounting for 60-65% of its revenue in India, the company’s reach goes far beyond smartphones. Products like AirPods, Apple Watches, and MacBooks are seeing a surge in demand, further solidifying Apple’s dominance in the market.
Apple’s focus on services, such as Apple Music and iCloud, is also playing a crucial role. These services cater to the growing need for premium content and cloud storage solutions, especially among young, tech-savvy consumers. This ecosystem approach is one of Apple’s strongest assets. Owning an iPhone becomes even more appealing when it seamlessly integrates with other Apple devices and services, creating a cohesive user experience.
The Bottomline
Apple’s impact on India’s tech landscape is undeniable. Through strategic moves in manufacturing and a focus on building a comprehensive ecosystem, Apple has not only increased its market share but also set the stage for long-term success in India. The company’s ability to adapt and thrive in a market known for its price sensitivity speaks volumes about its strategy and execution. As Apple continues to expand its footprint in India, the benefits extend beyond its own bottom line, providing a boost to local partners and the broader economy.
