iPhone craze deepens in India: Younger buyers, strong channels and manufacturing push to fuel multi-year double-digit growth

iPhone 17 series displayed at an Apple store in New Delhi. (Courtesy: Reuters photo)

Apple’s India story is shifting into a higher gear. The company is expected to sustain strong double-digit growth for the next 3–4 years, driven by surging iPhone demand and a rapidly expanding ecosystem of MacBooks and iPads. This momentum will be reinforced by a growing offline retail network, a wider premium reseller base and an expanding manufacturing and supply-chain ecosystem, analysts and sources told Moneycontrol.

The iPhone maker's India revenue climbed 18.26% in the fiscal ending March 2025 to Rs 79,378 crore, up from Rs 67,121 crore in FY24, according to fresh RoC filings shared by Tofler. Net profit rose 16.4% to Rs 3,196 crore, and analysts expect FY26 and FY 27 to deliver growth in a similar range.

With iPhones already commanding an 9% volume share and a 28% value share in the Indian smartphone market, analysts say Apple's next leg of growth will come from deepening demand in Tier-2, Tier-3 and smaller cities. Rising sales of MacBooks, iPads and AirPods — combined with a fast-growing network of Apple stores and premium resellers — is further accelerating the company’s India momentum, analysts and industry sources told Moneycontrol.

"The 18% growth in FY25 looks softer only because the base is bigger. Apple's installed user base has expanded sharply, and with a 9% market share, India is now its third-largest market," said Tarun Pathak, research director at Counterpoint. "Apple is firmly in the top five, and its revenue growth will remain in double digits for the next few years. Value-wise, it remains number one among handset makers."

Apple entered India's top five smartphone makers by volume in Q3 2025, with the country becoming its third-largest iPhone market, Counterpoint data shows. The brand led the premium-segment value share at 28%, up from 22% in 2024, fuelled by strong demand for the iPhone 16 and 15 series. The iPhone 17 launch has already outpaced the early demand of its predecessor.

While iPhones continue to drive most of Apple's India momentum, ecosystem products are contributing significantly. "Users are buying deeper into the ecosystem. Upgrade momentum is strong, and sentiment remains intact," Pathak added.

Offline expansion to drive sales

Analysts and industry sources said Apple is widening its premium reseller network to tap offline retail growth, complementing its own exclusive stores. The company will open a new flagship Apple store in Noida this December, after recently launching outlets in Bengaluru and Pune. It has previously opened stores in Mumbai and Delhi.

"Festive demand was strong, and we're seeing rising iPhone sales in Tier-2, Tier-3 and smaller markets," Pathak said. "To sustain this trend, Apple will need to target smaller retailers that currently have limited product availability."

Apple posted its highest-ever India revenue for the September quarter, contributing to its strongest global results yet, with total sales reaching $102.5 billion. The quarter marked Apple's 14th straight period of record iPhone sales in India, driven by continued retail expansion and increased local manufacturing. "We also set a September-quarter revenue record in emerging markets, and an all-time revenue record in India," CEO Tim Cook said during the company's earnings call.

Analysts said Apple's expanding installed base is also driving demand for devices such as the Apple Watch, iPad and Mac, strengthening its ecosystem in India. This comes at a time when iPhone demand shows no signs of slowing — at least for the next 18–20 months — with a new wave of younger buyers driving adoption.

Apple's manufacturing unit to drive expansion

Sources said that Apple’s momentum is equally visible in its growing manufacturing story in India, as its supplier ecosystem expands amid efforts to diversify its supply chain beyond China.

The company's unit, Apple Operations India Private Limited (AOIPL) established in 2023, is at the center of this expansion.

The unit supports Apple's manufacturing operations and expansion in India inline with its global practice where it set up similar units for drive manufacturing scale. The entity takes care of procuring engineering equipment, leasing facilities, employing engineers for R&D hardware activities and providing failure analysis services to Apple group companies, sources told Moneycontrol.

"AOIPL is a sign of Apple’s commitment to manufacturing operations in India. It's just in its second year of operations and shows that things will move faster from now," sources added.

Queries sent to Apple didn't elicit any response.

Several partners are expanding operations, while others have begun trial production or started exporting from new facilities.

Singapore-based TD Connex, which already operates a plant in Oragadam, Tamil Nadu, is planning a Rs 200-crore investment to expand its micro-precision component facility with capabilities including CNC machining, plastic injection, metal stamping, liquid silicone rubber and moulding for smartphone housings, sources said.

Yuzhan Technology, which recently started operations at its display-module assembly unit in Tamil Nadu, has begun exporting display modules assembled there to Foxconn factories outside India for certain iPhone models.

Karnataka-headquartered Aequs has been formally onboarded as a vendor in Apple's global supply chain and has begun trial production of MacBook enclosures and mechanical components for Apple watches.

"It is more of a pull than a push. More vendors will start applying and scaling in India. Over 45 companies are involved. Further expansion will depend on the scale of the iPhone ecosystem, and as Apple adds more products to its India manufacturing story, it will only grow," said a source familiar with the market.

Apple's supplier base remains concentrated in southern India due to the presence of critical supply-chain capabilities and skilled labour.

Apple is also engaging with Indian firms to explore joint ventures with Chinese, South Korean, Taiwanese and Japanese companies for the local production of critical components such as displays and camera modules. The company now has 45 suppliers in India, including smaller assembly players.

The tech giant is increasing the local content in its India-made iPhones, aiming to match Chinese production levels over the next two to three years. Beyond components, Apple is rapidly expanding its supply chain by sourcing manufacturing machinery domestically. About 35 companies already build such machinery in India, with nearly half supporting Apple, Moneycontrol reported on September 24. Apple plans to significantly increase this number over the next two to three years.

Major machinery suppliers include Titan Engineering and Automation Ltd (TEAL), Jyoti CNC Automation, Bharat Forge and Wipro, along with several smaller non-Chinese firms that have set up facilities in India. Apple is working closely with these firms to reduce logistical risks, lower operational costs and build a more resilient supply chain.

The secondary market is also strong, with high demand for refurbished and second-hand iPhones, and younger buyers — some as young as 11 — joining the Apple ecosystem, often purchasing an iPhone as their first personal device.