Apple is set for another successful year, with double-digit growth in its iPhone sales in 2024 in India on the back of improving financing options and an ongoing premiumisation trend where more customers are opting for pricier premium smartphones, analysts said.
Apple's smartphone volume market share could increase to 8-10 percent by 2024 from 6 percent in 2023, analysts added.
The iPhone maker’s interest in India is evident from its increasing focus on local manufacturing, the launch of its retail stores, and its growing emphasis on the large format retail (LFR) model.
“Apple could hit a double-digit market share in India this year. This could help Apple to be among the top five smartphone brands in India...around 2-3 brands could also see a decline in their market share, which will also benefit Apple,” Faisal Kawoosa, founder and analyst at TechArc, told Moneycontrol, on February 5.
Focus on consumer and enterprise segments to help
Kawoosa said that Apple’s focus on both consumer and enterprise segments may help it achieve more than a 50 percent increase in its volume market share, fetching it close to 10 percent of the market share by volume in India.
India was among Apple's fastest-growing iPhone markets in 2023, with annual shipments crossing 10 million units for the first time with a 46 percent growth, securing the top revenue position for the year, pipping its Korean rival Samsung, Counterpoint Research said in its report on January 31.
The iPhone 14 claimed the top spot as Apple's flagship model for 2023, followed by the iPhone 13, underscoring Indian consumers' preference for value. The iPhone 15, Apple's first flagship product manufactured in the country, came in third, contributing 10 percent to its 2023 shipments, as per Counterpoint data.
“With Indian consumers' increasing purchasing power, improving financing options, and a continuing trend of premiumisation, Apple is set for strong double-digit growth in 2024, which will further consolidate its iPhone base,” Tarun Pathak, research director at Counterpoint Research, told Moneycontrol. “Apple also achieved record December-quarter shipments as well as revenues.”
Prabhu Ram, head, Industry Intelligence Group, CMR, said that Apple has significant headroom for growth in 2024, and, potentially, to even garner an 8 percent share in India.
‘Growth of content creators driving sales of iPhones’
Ram said soaring iPhone shipments in 2023 showcase Apple's long-term potential in the region. “Apple is poised for explosive growth. India could be the next China for Apple, driving their success in the coming decade,” he added.
Apple is emerging as the preferred brand for devices across environments, driven by its high equity in GenZ, which is now entering its professional life, analysts said.
“Also, the growth of content creators all over the country is driving the sales of iPhones. The iPhone is usually the first device any content creator purchases after making money from content. For many content creators who want to monetise their content, the iPhone is becoming the preferred choice,” Kawoosa said.
Enterprise focus
Not just the consumer segment, Apple is also bolstering its enterprise play in the country to drive sales of its iPhones, iPads, and Macbooks.
“In 2024, I see Apple's enterprise play, including for SMEs, increasing in India with more and more GenZ population starting professional pursuits,” Kawoosa said.
During the earnings call on January 1, Apple CFO Luca Maestri said that 80 percent of the India-headquartered Zoho’s 15,000-plus global workforce uses iPhone for work, and nearly two-thirds use Mac as their primary computer.
Apple previously won a deal from IT major Wipro to provide MacBook laptops. Wipro is offering these laptops to attract top talent coming out of universities.
Apple also has enterprise deals with companies like Tata Consultancy Services (TCS) and Genpact.
Analysts said that Apple’s market share across larger enterprises has also been rising along with mindshare.
As per market trackers, Apple cornered around 6 percent laptop market share in India, translating into $400 million in Mac revenue in India
India is a priority market for Tim Cook
The India business of Apple Inc reported the highest December-quarter top line, with robust double-digit growth, riding on increased iPhone sales and higher enterprise adoption of its products.
“Emerging markets have been a very key area of strength for us. You know, if you look at it, India grew in revenue terms, strong double digits in the December quarter and hit a quarter revenue record,” Apple CEO Tim Cook said in the Q1 earnings calls.
“And that theme has been pretty consistent across other quarters of the year as well. And so, emerging markets (are) very, very important. And I feel like we are doing a great job there,” Cook added.
Apple produced iPhones worth over Rs 1 lakh crore in India in 2023, having ramped up the output sharply from the year before. Out of this, made-in-India iPhones worth Rs 65,000 crore were exported from January to December, as per market estimates.
Apple has exceeded the targets under the production-linked incentive (PLI) scheme, which may allow its contract manufacturers to get more residual incentives depending on the outlay, the Economic Times reported on January 9.
Foxconn has been India’s leading manufacturer of iPhones, contributing 68 percent of total production, followed by Pegatron at 18 percent and Wistron (Tata) at 14 percent. Foxconn exported nearly 58 percent of its total production of iPhones, while Pegatron and Wistron exported 80 percent and 96 percent of their iPhone production, respectively, from their India factories in 2023.
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