Apple is not only making strides in India’s smartphone market with growing demand for its iPhones but is also seeing a resurgence in non-handset categories such as MacBooks, iPads, Smartwatches, and TWS.
According to Counterpoint data accessed by Moneycontrol, the iPhone maker’s non-smartphone revenue is projected to reach $1.3 billion in 2024, reflecting a 14 percent year-on-year growth. On the other hand, Canalys data suggests that revenue from MacBooks and Mac PCs alone is expected to hit $1.1 billion in 2024, up from $800 million in 2023.
“Over the years, Apple has built an unmatched ecosystem of products and services, controlling the entire stack from chips to retail. As consumer interest in high-end devices grows, we will see Apple's resurgence in categories beyond smartphones, such as MacBooks, iPads, smartwatches, and TWS,” Anshika Jain, an analyst at Counterpoint Research, told Moneycontrol.
According to exclusive Counterpoint estimates shared with Moneycontrol, Apple's Mac shipments are projected to rise by 15 percent, while iPad shipments are expected to increase by 2 percent in the 2024 calendar year. Additionally, shipments of the Apple Watch and AirPods (TWS) are anticipated to grow by 50 percent and 3 percent, respectively.
This growth follows a year-on-year decline across all categories in 2023. In 2022, Apple experienced declines in Mac and TWS shipments, while iPad and smartwatch shipments grew due to a surge in demand driven by the COVID-19 pandemic.
MacBook/Mac to drive non-iPhone revenue growth
Analysts said Apple is betting on laptops and tablets to drive its revenue growth in 2024 as demand increases across enterprise and consumer markets.
According to Canalys estimates, Apple is expected to corner $900 million from MacBook and Mac sales and $400 million from iPad sales in 2024.
Apple has gradually gained ground in the enterprise laptop and PC segment despite a negligible presence. " The last three to four quarters saw a slowdown in enterprise procurement due to poor market conditions and layoffs, impacting Apple's growth. With refresh orders picking up, Apple is targeting an increased enterprise market share in the second half of 2024 and into 2025,” said Bharat Shenoy, senior market analyst at IDC.
Sources said Apple is reaching out to Fortune 500 companies in India, including its global customers, to drive MacBook and Mac sales. With new chips like M2 and M3, Apple is engaging enterprises to test its products, securing major accounts.
"With GenAI emergence, enterprises need better computing power. They want it to drive productivity. There are a lot of tailwinds there for Apple," a company source said on the condition of anonymity.
Apple works with enterprises and educational institutions such as Wipro, Zoho, SRM Institute of Technology, and Galgotias University. To further increase sales of its Mac PCs, it recently launched an India-specific ad campaign.
Apple didn't respond to Moneycontrol's queries.
Shenoy said demand in the country's PC and laptop market is expected to increase in the next three to four quarters, and Apple remains optimistic.
Counterpoint’s Jain said that within laptops, the enterprise segment captured around 40 percent of Apple’s total portfolio in 2023, up from 36 percent in 2022. “Mac laptops and PCs are gaining prominence in the corporate sector as the company continues strengthening its presence. We expect the enterprise segment to grow by 14 percent in 2024 as the brand is expected to strengthen its portfolio with the integration of Generative AI,” she added.
Canalys research analyst Ashweej Aithal credits Apple's emphasis on channel partners for the anticipated growth in shipments and revenue. MacBooks hold significant potential in SMB and enterprise markets, though migration from Windows to macOS has been limited. The business is currently driven by ongoing run-rate activities, but we foresee strong potential for Apple products.”
Growing iPad demand
Analysts predict similar trends for iPads as for laptops, with sales growth primarily driven by the consumer market. The enterprise tablet market has been stagnant, focusing mainly on entry-to-mid-level products.
“As the market moves towards premiumisation, iPads are also gaining more popularity among consumers, which will help to increase Apple’s share in India,” Jain said.
In the consumer space, Jain anticipates the demand for iPads and even MacBooks from the education sector, including coaching centres, universities, and schools.
According to IDC's Shenoy, after a decline of 11.1 percent in 2023, iPad sales are expected to rebound with 8-10 percent growth in 2024, fueled by Apple’s discounts and student offers. “The consumer segment will drive growth for iPads. Enterprise contributes less than 20 percent towards overall iPad sales in India. We expect iPad shipments to reach 6,40,000 units in 2024.”
Canalys' Aithal anticipates significant growth in iPad sales primarily due to an expected surge in the refresh cycle during the festive season. This is coupled with a relatively low baseline from 2023, impacted by inventory corrections and weak consumer demand.
“We also believe that discounts and financing schemes have significantly helped Apple strengthen its position in the consumer segment. Students have been the primary focus, and we expect many consumer purchases to be geared towards education. However, this demand is also driven by media consumption and content creation needs,” Aithal added.
iPad manufacturing to drive volumes
Moneycontrol had reported on July 8 that Apple was revising plans to manufacture its iPads in India, encouraged by the government's push to attract more supply chains. It is exploring the possibility with its existing partners, including Foxconn.
Analysts expect Apple iPad shipments to pick up next year due to its focus on local manufacturing.
“..there are significant developments in local manufacturing of iPads through Apple's collaboration with Foxconn at its Chennai facility. We might see some production by early next year,” Aithal added.
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