Apple‘s long-term strategy of shifting its focus to the Indian smartphone market and captivating Indian consumers seems to be paying off. India’s iPhone sales in Q2 2023 surpassed not only Germany and France but also exceeded expectations for the Cupertino giant itself. Now standing behind only the top four markets – the UK, Japan, China, and the US – India proved its worth and made history by entering Apple’s top five markets for iPhone sales for the first time ever.
The success in India can be attributed to Apple’s strategic efforts in boosting distribution and marketing, which have resonated with Indian consumers and captured their hearts.
The results have been truly remarkable, with India emerging as Apple’s fifth-largest iPhone market in Q2 2023, reports CNBC citing Counterpoint Research.
Now let’s take a closer look at the Indian smartphone market by the top five brands and uncover the key factors that have propelled India to become the fastest-growing and immensely promising market for Apple’s iPhones.
Growth in iPhone Sales in India Q2 2023
India’s bustling smartphone market is currently dominated by Android smartphone OEMs, mostly Chinese brands such as Xiaomi, Oppo, Vivo and the ever-formidable Korean giant Samsung. These companies have captured the hearts and wallets of Indian consumers in the last decade with their attractive features and competitive pricing. However, Samsung, not content with just a presence in the affordable and mid-range market, also competes head-on with Apple in the premium segment, both in India and the global smartphone market. This intense rivalry between the two tech giants adds a thrilling dimension to the smartphone industry in India.
In the second quarter of 2023, India emerged as a star player in Apple’s success story. During this period, the country contributed nearly 4% to Apple’s overall iPhone sales, underlining India’s significant impact on the US giant’s global performance.
While the exact number of iPhone sales in India during Q2 2023 remains a well-guarded secret by Counterpoint Research, they did reveal a jaw-dropping growth of 50% YoY in shipments, showcasing the insatiable demand for Apple’s iconic iPhones among Indian consumers.
Apple also claimed a significant slice of India’s total smartphone market, commanding an impressive 5.1% market share by the end of Q2 2023. This surge in market presence is a remarkable leap from the 3.4% share recorded during the same period last year.
Apple’s relentless pursuit of success in India is evident as they intensify their efforts on both the retail and manufacturing fronts, cementing their position in the world’s fifth-largest economy.
What Is Driving Apple’s Growth in India?
Here the question arises, what is truly driving Apple’s growth in India’s smartphone market?
Is it the ever-increasing population or increased buying power of consumers, coupled with enticing discounts and promotions offered by e-commerce companies and banks? Or, is it the innovative features of iPhones with unparalleled brand appeal that set them apart from Android devices?
There is no denying that Indians’ buying power has increased over the past decade. People are spending more on smartphones, smartwatches, online games, foreign trips, and many other things than ever. With a population of 1.4 billion, India presents an immense opportunity for global e-commerce and smartphone companies to tap into this potential and generate substantial revenue. The success story of Xiaomi in India is particularly remarkable and inspiring. Within three years of its entry, Xiaomi became India’s top smartphone brand, surpassing the longstanding dominance of Samsung in terms of sales.
The success of Xiaomi fueled the ambitions of other Chinese brands like Oppo and Vivo, who swiftly made their mark in India. By strategically catering to price-conscious Indian consumers with budget-friendly and mid-range smartphones, these brands efficiently outpaced local players like Micromax and Lava.
Apple, another prominent global smartphone company, is now poised to experience exceptional growth in India, despite the country’s reputation for being price-sensitive. As Indian consumers continue to increase their spending power and seek out products that offer both quality and value, Apple’s growth trajectory in India is set to be extraordinary.
Interestingly, the premium smartphone segment in India has been witnessing remarkable growth, with Apple and Samsung leading the way. Smartphones priced over $400 (₹32,854) now claim a substantial 10% share of the total volumes of handsets shipped, a notable surge from the pre-Covid-19 era when they accounted for a mere 4%. Samsung’s ultra-premium segment (>INR 45,000, ~$550) grew 247% YoY in Q1 2023. On the other hand, Apple continues to dominate the overall premium segment (>INR 30,000) and the ultra-premium segment (>INR 45,000, ~$550), with market shares of 36% and 62%, respectively.
This shift in consumer preferences reflects an evolving landscape, as Indian consumers increasingly gravitate towards premium offerings that offer cutting-edge features, advanced technology, and a superior user experience. While low-cost Android smartphones continue to dominate the majority of the market, the growing popularity of premium smartphones indicates a changing tide, where discerning consumers are willing to invest in higher-priced devices that deliver exceptional performance and innovation.
To seize this opportune moment, Apple made significant moves in April 2023. Opening its first retail stores in India, specifically in the capital city Delhi and the financial capital Mumbai, was a strategic decision. This move marked Apple’s direct presence in the Indian retail landscape, providing consumers with an immersive and hands-on experience of their products. This physical retail expansion is a testament to Apple’s commitment to establishing a strong foothold in the Indian market and catering to the preferences of local consumers.
In addition to expanding its retail presence, Apple demonstrated its dedication to India’s market by diversifying its manufacturing operations. By shifting some of its iPhone production to India, the company seeks to reduce its reliance on China, where most of its flagship smartphones are currently manufactured/assembled. This manufacturing diversification not only aligns with Apple’s global supply chain strategy but also aligns with India’s “Make in India” initiative, which aims to boost local manufacturing and create job opportunities within the country.
Another biggest factor driving Apple iPhone sales growth in India is the company’s relentless focus on innovation and the exceptional features and specifications of iPhones. Apple’s iPhones always stand out in the market, setting them apart from premium smartphones offered by Samsung and other Android OEMs.
Apple has built a reputation for pushing the boundaries of technology with each new iPhone release. The iOS ecosystem is a key aspect that contributes to Apple’s appeal to consumers. It offers a seamless and user-friendly experience, capturing the attention of tech-savvy Indian users. One of the distinctive strengths of Apple’s iPhones is the seamless integration of their hardware and software. This meticulous integration ensures optimal performance and efficiency, providing a reliable and consistent user experience.
Surprisingly, the 2021 launched iPhone 13, priced at ₹64,900, emerged as the top-selling model in the overall Indian smartphone market in Q4 2022. The love for Apple’s iPhones becomes even more evident when considering that it is the first time in history that a premium device has secured the top position on the list of best-selling smartphones by sales, surpassing the traditionally dominant budget smartphones.
The iPhone 13’s outstanding features and specifications, including the powerful A15 Bionic chip, 12MP dual-camera setup, and impressive battery life of up to 19 hours of video playback, have made it the most sought-after smartphone in the Indian smartphone market. This exceptional demand for iPhone 13 has surpassed Samsung’s S22, solidifying its position as a dominant player in the highly competitive smartphone industry.
As the demand for iPhones among Indian consumers continues to soar, Apple is poised to generate billions in revenue from iPhone sales in India.
Industry analysts from Morgan Stanley are placing their bets on the potential goldmine that India represents for the Cupertino giant. In stark contrast to the past five years, where India contributed only 2% to Apple’s revenue growth, analysts now project that over the next five years, this dynamic market could account for a remarkable 15% of the company’s revenue growth. This leap represents a phenomenal journey from the current $6 billion to new heights of success. But that’s not all! The analysts also projected that Apple’s revenue growth in India over the next decade could reach a mind-boggling $40 billion. These forecasts indicate the immense opportunities that India presents for Apple’s expansion and market share in the coming years.
The Indian market is sending ripples of excitement through the tech world, and Apple seems to be at the centre of it all! But, will Apple’s relentless focus on innovation, strategic marketing efforts, and the increasing demand for premium smartphones in India eventually propel it to overtake Xiaomi and Samsung, making it the largest smartphone brand in the country? Share your thoughts in the comment section below!
