India becomes Apple's top 5 iPhone market for the first time, edges out Germany and France (2024)

New Delhi,UPDATED: Jul 25, 2023 14:44 IST

India is slowly emerging as a key market for Apple. The company is also investing heavily to boost sales and production in the country. It appears that both Apple's efforts and consumer preferences are slowly aligning. According to research firm Counterpoint, as reported by CNBC, India has become Apple's fifth-largest iPhone market in the second financial quarter ending in June. India has surpassed Germany and France for iPhone sales. The leading markets remain the US, China, Japan, and the UK.

The report adds that India contributed roughly 4 per cent of iPhone sales in Q2 2023. The research firm has not disclosed the exact number of units Apple sold in India, though it states that the iPhone maker witnessed a 50 per cent growth YoY (year-on-year). Apple's market share in India's phone segment is also increasing. The report citing Counterpoint highlights that Apple's share rose to 5.1 per cent from 3.4 per cent last year.

Notably, Apple CEO Tim Cook said something about India early this year. During an earnings call for investors in May, Cook stated that Apple witnessed an "all-time iPhone revenue record" in India Q1 2023 (which is Apple's second financial quarter). He also referred to Apple Store launches in the call and said, "I was just there, and the dynamism in the market, the vibrancy is unbelievable. Over time, we have been expanding our operations there to serve more customers."

Counterpoint findings come days after Morgan Stanley analysts said in a note that India would be a major driver of Apple's five-year revenue. Analysts forecast India to account for 15 per cent of Apple's overall revenue in the next five years.

Apple has been investing heavily in India as the company seeks new markets for production following heavy COVID-19-related setbacks in China last year. Apple is planning to increase its iPhone production capacity in India from 7 per cent in 2023 to 18 per cent in 2025. The boost in the production of electronics, like phones, also stems from the tax incentives by the Indian government.

Indian conglomerate Tata Group is also finalizing its deal to take over Wistron Corp's factory in Karnataka, becoming the first Indian company to produce iPhones in India.

Apple is also improving its distribution channels in India for easy access to its premium iPhones. The company already operates via an online store. The company recently opened two new physical stores in India (Delhi and Mumbai). Apple is also expected to open two more stores in India by 2025.