Apple Dominates the Indian Market in 2024 with Premiumization, PLI Initiatives, and Retail Growth

New Delhi, Dec 29 (NationPress) 2024 has undoubtedly marked a significant year for Apple in India, as the tech leader achieved new milestones in exports and domestic sales, fueled by the increasing trend of premiumization, the government’s production-linked incentive (PLI) program, and a robust retail expansion.

Industry analysts note that Apple’s strategic maneuvers in India over the past year have led to impressive accomplishments and enhanced market significance.

The electronics sector has witnessed a remarkable 45 percent surge in smartphone exports, as major players like Apple ramp up production in the country. Apple’s establishment in India, backed by its partners Foxconn, Pegatron, and Tata Electronics, has significantly contributed to this year’s smartphone export growth.

In the first seven months of the current fiscal year (FY25), Apple’s iPhone manufacturing reached an impressive $10 billion, with $7 billion attributed solely to exports, marking a historic achievement. During the April-October timeframe, the company exported iPhones at an average of nearly Rs 8,450 crore (approximately $1 billion) each month, according to industry statistics.

As per Tarun Pathak, Research Director for Mobile Devices and Ecosystems at Counterpoint Research, Apple has successfully captured a market share in India, appealing to the aspirations of the youth, fostering strong consumer connections, and expanding its distribution and manufacturing channels alongside effective marketing campaigns.

“Apple has effectively harnessed the premiumization trend in the world’s second-largest smartphone market. The momentum for ultra-premiumization is consistently growing with each quarter,” Pathak conveyed to IANS.

India’s strategic importance to Apple is evident through its three-pronged strategy—concentrating on domestic manufacturing, distribution, and promoting premiumization.

According to Counterpoint Research Market Outlook, the country is expected to overtake Japan and the UK to emerge as Apple’s third-largest market in terms of shipments by 2026.

“The trend of premiumization in India, enhanced by accessible financing options, increases affordability for premium smartphones, thus benefiting Apple’s focused approach in this segment,” Pathak added.

Apple’s shipments in India are projected to exceed 11 million units in 2024, reflecting a 10 percent growth year-on-year, with similar growth anticipated in 2025, according to market observers.

In response to the rising demand for its iPhones in aspirational Bharat, Apple experienced a remarkable 36 percent growth in its operating revenue in India, surpassing Rs 66,700 crore (about $8 billion) in FY24. The tech giant also recorded a profit of Rs 2,746 crore ($330 million) in the previous fiscal year.

The company’s profit saw a 23 percent increase in FY24 compared to Rs 2,229.6 crore ($268 million) in FY23.

Prabhu Ram, VP of the Industry Research Group at CyberMedia Research (CMR), informed IANS that Apple’s growth trajectory in India is expected to maintain significant momentum in the forthcoming year, driven by extensive retail expansion, targeted marketing strategies, and deeper engagement with the aspirational Indian consumer base.

“This growth is propelled by robust demand for both the latest and earlier generation iPhones,” Ram stated.