India is on track to emerge as Apple’s third-largest market by 2026, following the US and China, as local sales are projected to grow by up to 20% next year, according to sources. This remarkable growth underscores India’s growing importance in Apple’s global strategy, driven by its expanding middle class, rising disposable incomes, and an increasing appetite for premium devices.
India’s rising position in Apple’s global market
Currently, India stands as Apple’s fifth-largest market, behind Japan and the UK. However, with a surge in demand for iPhones and other Apple products, India is rapidly climbing the ranks. By the end of 2024, Apple is expected to ship over 12 million iPhones to India, significantly surpassing the 8.5 million units shipped in 2023. This growth reflects India’s evolution into a critical market for the tech giant.
Key drivers of growth
Several factors are driving Apple’s robust performance in India, including accessible financing options that make premium products affordable for the middle class, significant festive discounts that have exponentially boosted sales, and a growing consumer preference for premium devices fueled by rising incomes and increased purchasing power.
The company’s focus on local production has also played a pivotal role in reducing tariffs, further driving affordability.
India’s growth, China’s decline
While Apple is thriving in India, its market share in China has been steadily declining. In Q3 FY24, Apple’s share in China’s premium smartphone segment dropped from 24% to 14%, with local competitors like Huawei and Xiaomi gaining ground. This shift highlights the strategic importance of India as Apple seeks to offset losses in China.
Future outlook and challenges
By 2025, iPhone shipments in India are expected to reach 14-15 million units. Apple is also expanding its retail footprint, targeting Tier-II and Tier-III cities, and planning four new flagship stores in 2025. However, the company faces challenges, such as modest revenue growth due to declining average selling prices (ASPs).
Despite these hurdles, Apple’s dominance in the premium smartphone segment remains unshaken. In Q3 2024, its market share in the $600+ category rose to 64%, demonstrating its stronghold.
A bright future for Apple in India
India’s rapid ascent in Apple’s global market rankings underscores the country’s growing economic strength and consumer evolution. With strategic investments and a focus on emerging markets, Apple is poised to achieve unprecedented success in India while solidifying its position as a global leader in the premium technology space.
