In Short:
Apple Inc’s business value in India surpassed Rs 2 lakh crore in fiscal 2024, fueled by rising iPhone exports and local sales of MacBooks, iPads, and Watches. Exports alone reached Rs 1.35 lakh crore. Apple’s strategic partnerships, manufacturing in South India, and revamped sales strategies boosted its rapid growth, making it a leader in India’s smartphone manufacturing scene.
The financial performance of Apple Inc. in India has reached a remarkable milestone, with its business value, including exports, surpassing ₹2 lakh crore in fiscal year 2024. This surge is attributed to significant growth in local manufacturing and exports of iPhones, alongside an increase in domestic sales of other products such as MacBooks, iPads, and Watches.
According to officials, the U.S.-based tech giant has likely demonstrated the fastest growth in production and exports by any company in India over the past 50 years, establishing itself as the largest global value chain operating within the country.
The company exported iPhones worth ₹1.35 lakh crore in FY24, the highest by any single brand from India, while its local sales amounted to ₹68,000 crore. The Economic Survey 2023-24 notably referenced Apple five times, highlighting its crucial role in India’s aspiration to become a global smartphone manufacturing hub.
Factors Behind Apple’s Growth
Patience and Perseverance:
While Apple’s recent success is widely acknowledged, it has taken years of dedication and planning to realize these results. Initial discussions with the government began in 2016, during CEO Tim Cook’s first visit to India. These discussions evolved significantly by 2019 when then-principal secretary of the Prime Minister’s Office, Nripendra Misra, formed a committee to establish an incentive scheme for electronics manufacturing. This committee, chaired by Amitabh Kant, engaged in consultations with global players such as Apple and Samsung, as well as Indian companies like Lava and Dixon.
Following over ten months of negotiations, the smartphone production-linked incentive (PLI) scheme was introduced in 2020.
Utilizing the Scheme to Its Advantage:
Among the five global and an equal number of domestic companies selected under the PLI scheme, Apple has effectively maximized its benefits. Its three contract manufacturers—Foxconn, Wistron (now owned by Tatas), and Pegatron—have significantly increased production, often exceeding PLI targets for investment and sales. In contrast, Rising Star (now Bharat FIH), a unit of Foxconn, failed to meet its targets consistently, while Samsung fell short in the scheme’s second year, allowing Apple’s vendors to receive additional benefits.
Strategic Manufacturing Locations:
Apple has strategically chosen manufacturing sites in Karnataka and Tamil Nadu to foster an ecosystem conducive to business. Both states are economically robust with effective bureaucracies, facilitating operations. Furthermore, they promote a progressive work environment, particularly for women in manufacturing, enhancing operational efficiency.
Sales and Distribution Strategy
The past few years have favored Apple in the Indian market. According to Counterpoint Research, the company revamped its channel strategy in 2019, emphasizing partnerships and streamlining distribution through Apple experience stores, along with online channels, including partnerships with Flipkart and Amazon. With 42% of sales occurring through e-commerce, this strategy was pivotal during festive seasons, propelling growth.
Strengthening the iPhone Brand
Unquestionably, the iPhone stands as Apple’s flagship product, constituting approximately 51% of its global revenue. In India, the contribution is even more pronounced, accounting for 60-65% of revenue. To cater to varying consumer budgets, Apple offers multiple generations of iPhones along with accessible financing options, enhancing affordability and expanding its ecosystem for other products.
Premiumization Trend
With strategic marketing efforts, growing brand reputation, and a distinctive product portfolio—including the Apple Watch and MacBooks—Apple has established itself as a leading choice for the younger, mobile-centric demographic in India, according to Counterpoint Research. The easier access to financing and the trend towards premiumization have driven significant demand for Apple’s products, further buoyed by the strong resale value, making them an appealing choice for consumers.
