Apple achieves record $8 billion annual sales in India, marking 33% growth YoY

Apple Inc.'s annual sales in India have reached a record high of nearly $8 billion, marking a 33 per cent increase from the previous year's $6 billion, according to a report by Bloomberg. The growth underscores the rapidly expanding market where Apple is boosting its device assembly and has opened two flagship stores.

The surge in revenue was driven by the popularity of Apple's iPhones, which accounted for more than half of the sales. This growth reflects Apple's efforts to attract users in India, the world's most populous country, where consumers' purchasing power is rising.

Apple is focusing on India to diversify its manufacturing and revenue sources beyond China. Trade tensions between the US and China have made China a riskier market, prompting Apple to seek growth opportunities elsewhere.

Despite its rapid growth, Apple holds a small share of the Indian market, dominated by cheaper Android devices from Chinese manufacturers. iPhones represent only about 3.5 per cent of the approximately 690 million smartphones in use in India. However, India remains one of Apple’s fastest-growing markets, even though it accounts for just 2 per cent of Apple's total sales of $383 billion in the latest fiscal year.

Apple’s CEO Tim Cook has been actively working to boost the company's presence in India. Last year, he inaugurated the first two Apple Stores in the country, which sell a range of Apple products. Cook views India’s growing middle class, which perceives Apple products as status symbols, as key to reducing Apple's reliance on China.

Apple is also ramping up its manufacturing in India. The company currently assembles several models, including the latest iPhone 15, but not the higher-spec Pro and Pro Max models. Most of these devices are exported. Apple’s assembly partners in India doubled their production to $14 billion worth of iPhones last fiscal year, making up 14 per cent of Apple's global production.

In an earnings call in May, Cook expressed his enthusiasm for the Indian market, describing it as an 'incredibly exciting market' and a major focus for Apple. The company's comprehensive strategy in India includes efforts across development, marketing, and operations, indicating a long-term commitment to this key growth market.