Apple’s revenue from India grew by 50% in the recently concluded fiscal year, according to reports. The company’s steps to increase production and improve its retail footprint in the country could help to sustain this impressive momentum. Apple’s focus on increasing sales in India could reap rich rewards in the long run, thanks to the country’s massive addressable market.
Here are some of the key factors that contributed to Apple’s growth in India:
• Increased production: Apple has been increasing its production of iPhones in India in recent years. Due to avoiding high import tariffs, shipping, and other factors, this has made its products more affordable and accessible to Indian consumers.
• Improved retail footprint: Apple has also been expanding its retail footprint in India. The company now has over 25 retail stores in the country, which makes it easier for consumers to buy its products.
• Strong demand for premium smartphones: India is a growing market for premium smartphones. Apple’s iPhones are among the most popular premium smartphones in the country.
• Positive economic outlook: The Indian economy is expected to grow at a healthy pace in the coming years. This will create more disposable income for Indian consumers, which could lead to increased demand for Apple’s products.
Apple’s focus on India is a long-term strategy. The company believes that the country has the potential to become one of its largest markets in the world. By investing in India now, Apple is positioning itself to capture a significant share of this growing market in the years to come.
Harsh Chauhan for The Motley Fool:
Bloomberg reports that Apple’s revenue in India hit $6 billion in the 12-month period from April 2022 to March 2023.
Apple has generated $387 billion in revenue in the trailing 12 months, which means that India is still a very small portion of its business and doesn’t account for even 2% of the company’s top line. But that doesn’t mean investors should discount Apple’s massive potential in the India, especially considering the pace that market has been growing at a time when the broader smartphone market is under stress.
Smartphone shipments in India were down 10% in 2022 to 144 million units. But Apple weathered that downturn thanks to its 60% share of India’s premium smartphone segment, which includes phones priced at $500 and above. The company reportedly controlled 5.5% of the Indian smartphone market at the end of 2022, according to CyberMedia Research (CMR). It is worth noting that this is Apple’s highest-ever share in a price-sensitive market such as India and increased from 4.4% at the end of 2021.
This also tells us that Apple has massive room for growth in India. Only 4% of the country’s 700 million smartphone owners have an iPhone… [T]his market could play a key role in helping this tech stock soar in the long run.
MacDailyNews Take: India will be a main engine for driving Apple for the foreseeable future.
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