Why India is a growth market for Apple despite slump in sales of ultra-premium smartphones

India is the world’s second-largest smartphone market after China. Apple is the second-largest smartphone maker after Samsung. Now the two are looking to build on these similarities, as an increasing number of Indians aspire to own ultra-premium smartphones amidst a slump in this category globally.

India has emerged as a growth market for Apple at just the right time. And the launch of the iPhone 15 series could not have been timed any better, coming just ahead of the long festive season.

This is set to boost Apple’s growing presence in the country. Consider this: From a mere 2 per cent market share in India in 2019, Apple increased its presence to 4 per cent by 2022. In the April-June quarter, the company managed record sales and its share increased to 5 per cent. Its share is now projected to reach an impressive 7 per cent by the end of this calendar year.

“Apple has experienced robust market growth in India in recent years, propelled by a combination of enhanced localisation efforts and a more assertive approach to both online and offline retail strategies. With the Apple iPhone 15 series, Apple is poised to sustain this growth,” says Prabhu Ram, Head of Industry Intelligence Group (IIG) at CyberMedia Research (CMR).

In terms of the products, the iPhone 15 and iPhone 15 Plus have received significant updates—right from the Dynamic Island to an advanced 48MP camera. The new models also showcase Apple’s innovation—industry-first colour-infused back glass with a textured matte finish and a new contoured edge on the aluminium enclosure. Yet they continue to be priced as aggressively as the last-generation models. Prices for the iPhone 15 start at Rs 79,900, while for the iPhone 15 Plus is available from Rs 89,900.

“The scales this time might tip more towards the non-pro versions. We expect base 15 models [to see] a solid uptick as there is a significant upgrade for someone shifting from previous iPhone 11 or iPhone 12 or even iPhone 13 gen iPhones,” says Tarun Pathak, Research Director at technology research firm Counterpoint Research.

Apple is doing everything it can to cash in on this demand surge. A few years back, it included India in the first phase of the global iPhone launch, and has now opened two retail stores in the country.

@nidhisingal