 "Apple's India growth soars, to become Apple's 3rd-largest market by 2026")
India is set to become Apple’s third-largest market by 2026, following the US and China, with local sales expected to grow by as much as 20 per cent next year, according to a report by The Economic Times.
This shift is a part of Apple’s broader strategy to focus on emerging markets, compensating for its declining market share in China due to the resurgence of Huawei.
India’s current position
Presently, India is Apple’s fifth-largest market, behind Japan and the UK, which hold the third and fourth positions, respectively. However, India’s rapidly growing middle class, along with rising disposable incomes, is driving a shift towards premium products.
Factors driving Apple’s growth
Experts attribute Apple’s rising market share in India to several factors:
>Financing options: The availability of financing plans has made Apple’s premium products more accessible.
>Festive discounts: Major discounts during festive seasons have further boosted sales.
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>Consumer shift: A growing preference for premium devices aligns with higher incomes and greater consumer purchasing power.
By the end of 2024, Apple would have shipped over 12 million iPhones to India, a significant increase from 8.5 million in 2023, surpassing the previous year’s numbers well before the end of the year. Strong sales of the latest iPhone models are expected to contribute an additional four million units in the December quarter.
Declining market share in China
In contrast to its success in India, Apple’s market has been facing a steady decline in China. Local competitors, particularly Huawei, have been gaining ground, even in the premium segment where Apple had previously been dominant. The US tech giant’s market share in China dropped from 24 per cent in Q4FY23 to 14 per cent by Q3FY24, and shipments dwindled as Chinese companies regained market share, The Economic Times report mentioned.
India’s market is expected to continue its upward trajectory. Experts predict that iPhone shipments could reach 14-15 million by 2025, further solidifying India’s role as a key growth market. While Apple may see a slight reduction in absolute revenue growth due to localised production and tariff cuts, its focus on emerging markets like India remains central to its strategy.
Challenges ahead for Apple
Despite strong sales, Apple’s revenue growth in India is expected to be modest. The reduction of import duties and increasing local manufacturing may cause average selling prices (ASP) to soften. Apple’s ASP in India dropped from $1,084 to $958 in Q3 2024 and is expected to decline further in 2025, especially if an affordable iPhone SE model is launched, the news report said.
In India, Apple commands a significant share of the premium smartphone market, particularly in the $600+ segment. In Q3 2024, Apple’s share in this segment rose to 64 per cent, up from 56 per cent a year ago, further demonstrating the brand’s dominance in the premium category. In comparison, its market share in China’s premium segment has been slipping, with Huawei, Honor, Xiaomi, and Vivo gaining ground.
Apple’s expansion strategy in India also includes targeting smaller cities, where growth is accelerating. While Mumbai, Delhi, and Bengaluru remain key markets, Apple plans to open four more flagship retail stores in 2025. The company has also focused on increasing its presence in Tier-II and Tier-III cities, where demand for premium products is rising.