As iPhone shipments in the country continue to soar, and the situation at China market becomes more complex, India might be Apple’s third-largest market in the next few years!
Apple is expected to become India’s third-largest market by 2026, following the US and China, with sales projected to increase by up to 20% next year, according to the Economic Times.
Currently, India ranks as Apple’s fifth-largest market, behind Japan and the UK, but the country’s expanding middle class and growing disposable incomes are driving a shift toward premium products.
This growth is part of Apple’s strategy to focus on emerging markets as it faces a decline in market share in China due to the resurgence of Huawei. Key factors contributing to Apple’s success in India include accessible financing plans, festive discounts, and a growing consumer preference for premium devices.
By the end of 2024, Apple is expected to ship over 12 million iPhones to India, a significant rise from 8.5 million in 2023. Strong sales of the latest iPhone models are anticipated to contribute an additional four million units in the December quarter. By 2025, this number is poised to reach 14-15 million.
In contrast, Apple’s market share in China has dropped significantly, from 24% in Q4 FY23 to 14% by Q3 FY24, as local competitors, notably Huawei, have gained ground in both the premium and broader smartphone segments.
However, the company’s revenue growth in India may be constrained by factors such as reduced import duties, local manufacturing, and the potential introduction of an affordable iPhone SE model. These changes could lower India’s average selling price (ASP), which decreased from $1,084 to $958 in Q3 2024.
To bolster its market position, Apple plans to expand its presence in smaller cities and open four new flagship stores in 2025, cementing India as a key growth market.
