Apple's India Sales Surge in FY24 Amid Manufacturing Boost and Premiumisation Trend
Apple Inc. has reported a significant surge in its India sales for the fiscal year 2024 (FY24), reaching approximately $8 billion, marking a robust 33% increase year-on-year. The growth has been propelled by strong demand for iPhones amidst India's expanding domestic manufacturing and a growing trend towards premiumisation in the smartphone market.
As China and Vietnam face setbacks, Apple has capitalized on India's production-linked incentive (PLI) scheme, boosting its local manufacturing capabilities and enhancing distribution channels. This strategic move has not only bolstered domestic sales but also set new records in exports, with iPhone shipments projected to grow by more than 20% this year.
"Premiumisation has gained momentum, and Apple has strategically leveraged this trend through its devices and financing options", stated Tarun Pathak, Research Director at Counterpoint Research. "The brand's strong appeal and expanded channel presence in India have been instrumental in its growth trajectory".
India's mobile phone exports surged to nearly $16 billion in FY24, driven predominantly by Apple's manufacturing prowess within the country. This growth comes as China's mobile phone exports dipped from $136.3 billion to $132.5 billion and Vietnam's from $31.9 billion to $26.27 billion over the same period.
"Apple's strategic alignment with India's PLI scheme has significantly contributed to its manufacturing capabilities and export achievements", Pathak added.
The surge in Apple's sales also reflects its adeptness in offering financial schemes that appeal to premium segment consumers, coupled with sustained software support that extends the lifespan of older devices.
Prabhu Ram, VP-Industry Research Group at CyberMedia Research (CMR), highlighted India's evolving consumer landscape, where rising disposable incomes among the middle class are driving growth in the premium smartphone segment. "Apple's growth momentum in India is bolstered by its strong brand presence and focused investment in manufacturing and retail operations", Ram noted.
Amid escalating US-China tensions, India has emerged as a strategic alternative for Apple, offering diversification in both manufacturing and revenue streams.
"India presents Apple with a strategic advantage in diversifying its global operations amidst geopolitical uncertainties", Ram emphasized.
Apple's success in India underscores its commitment to leveraging local manufacturing incentives and capturing opportunities in a burgeoning market. The company's ability to adapt to local market dynamics and consumer preferences continues to drive its expansion in one of the world's fastest-growing smartphone markets.
