Apple has achieved a remarkable milestone in the Indian smartphone market, registering a 23% year-on-year surge in iPhone sales in 2024. According to CyberMedia Research (CMR), Apple’s market share in India has expanded to 7%, driven by increased local manufacturing and the growing trend of premium smartphone adoption in smaller cities.
This growth underscores the rising demand for high-end devices, fueled by a combination of changing consumer preferences, aggressive retail expansion, and Apple’s strategic focus on domestic production. Moreover, iPad sales in India saw an even more impressive 44% growth, cementing Apple’s dominance in the premium segment.
The Key Drivers Behind Apple’s Record Growth in India
1. Increased Domestic Manufacturing and Government Support
The Make in India initiative and Production-Linked Incentive (PLI) scheme have significantly contributed to Apple’s expansion. By ramping up local manufacturing, Apple has reduced dependency on imports, making iPhones more accessible and competitively priced for Indian consumers.
- Foxconn, Pegatron, and Wistron (now acquired by Tata Group) have played a pivotal role in assembling iPhones locally.
- The Indian government’s PLI incentives have encouraged Apple to boost production and expand exports, positioning India as a key global manufacturing hub.
- Apple’s iPhone exports from India have reached record levels, showcasing the brand’s confidence in the country’s industrial capabilities.
2. Premiumization of the Indian Smartphone Market
A significant shift in consumer behavior has emerged, with Indian buyers increasingly opting for premium devices. The growing affluence of the middle class, coupled with higher disposable income, has fueled demand for high-end smartphones.
- Apple dominates the ultra-premium segment (₹45,000 and above), holding over 60% market share.
- The trend of longer smartphone replacement cycles has prompted users to invest in premium models for longevity and better value.
- Financing options like zero-cost EMIs and exchange offers have made iPhones more affordable to a broader consumer base.
3. Expansion of Apple Retail Presence in India
Apple’s strategic retail expansion has played a crucial role in strengthening its foothold in India.
- In April 2023, Apple opened its first official stores in Mumbai (BKC) and Delhi (Saket), enhancing its direct-to-consumer presence.
- The brand’s exclusive partnership with premium resellers has expanded its reach across tier-2 and tier-3 cities.
- Apple has prioritized an omnichannel retail strategy, integrating its official online store with offline experiences to enhance customer engagement.
4. Strong Demand for Older and Newer iPhone Models
Apple’s strategy of offering multiple iPhone models across different price segments has resonated well with Indian consumers.
- The iPhone 15 series saw record demand, thanks to significant hardware improvements and USB-C adoption.
- The iPhone 13 and iPhone 14 models remained popular due to aggressive discounts and cashback offers.
- Apple’s software longevity continues to be a major selling point, with iOS updates extending device life beyond five years.
Apple’s Position Among India’s Top 5 Smartphone Brands
For the first time, Apple entered India’s top five smartphone brands in the October–December 2024 quarter, a historic achievement.
- Apple’s market share by volume neared 10%, a significant jump from previous years.
- The brand’s value share (revenue-based market share) is now over 25%, indicating its dominance in the premium sector.
- In contrast to competitors like Samsung, OnePlus, and Google, Apple has leveraged its brand loyalty to sustain double-digit growth rates.
Apple iPad Sales See a 44% Surge in India
Apple’s iPad lineup also saw substantial growth, with 44% year-on-year growth in 2024. This rise is attributed to:
- Increased adoption of iPads for online learning, creative professionals, and business use cases.
- The introduction of M2-powered iPad Pro models, which delivered exceptional performance for professionals.
- Competitive pricing on iPad Air and iPad 10th Gen, making them attractive to students and casual users.
Apple’s Future in India: A Promising Outlook for 2025 and Beyond
Experts predict that Apple’s growth trajectory in India will continue to accelerate in 2025 and beyond. Several factors will drive this momentum:
- Further localization of production, reducing costs and making iPhones more accessible.
- Expansion of Apple Store locations, bringing more personalized experiences to consumers.
- Stronger penetration into tier-2 and tier-3 markets, capitalizing on India’s growing digital adoption.
- Potential introduction of Made-in-India iPhones at launch, reducing the price gap between global and Indian models.