In Short:
Apple Inc. recorded $8 billion in sales in India, up 33% from the previous year. Despite iPhones making up only 3.5% of smartphones in use, Apple is expanding in the market to diversify from China. The company’s CEO, Tim Cook, is focusing on India as a key growth market, opening Apple Stores and increasing manufacturing. India’s expanding middle class presents an opportunity for Apple’s growth beyond China.
Apple Inc.’s annual sales in India hit a record of almost $8 billion, underscoring a rapidly growing market where the iPhone maker now assembles more of its devices and operates two flagship stores.
Revenue Growth in India
The India revenue jumped about 33% in the 12 months through March from $6 billion a year earlier. Apple’s pricey iPhones accounted for more than half of the sales, signaling a steady progress in Apple’s effort to win users in the world’s most populous country.
Diversifying Revenue Sources
Apple is targeting India as a way to diversify its manufacturing and revenue sources beyond much larger market China, which has become riskier because of trade tensions with the US.
Market Share in India
Even though India is one of Apple’s fastest-growing markets, iPhones make up just about 3.5% of the country’s roughly 690 million smartphones in use. However, the steadily expanding middle class in India views Apple products as status symbols, which could help the company reduce its sales dependence on China.
CEO’s Focus on India
Chief Executive Officer Tim Cook has been focusing on India as an incredibly exciting market, opening the country’s first two Apple Stores that sell a range of Apple products. He sees India as a major focus for the company’s future growth.
Manufacturing Expansion in India
Apple has been rapidly expanding its manufacturing push in India, making models including the latest iPhone in the country. It exports most of the devices assembled in India and aims to increase production to meet the growing demand in the Indian market.
On Apple’s earnings call in May, Cook emphasized the company’s commitment to India and its potential as a key growth market.
