With India pushing for domestic manufacture under the production-linked incentive (PLI) plan, tech giant Apple experienced a strong $8 billion in sales in the country in the most recent fiscal year (FY24), a nearly 33 percent increase (year-over-year). Meanwhile, China and Vietnam struggle.
The majority of the surge, according to sources, was fueled by iPhones in the midst of the premiumization trend that has become firmly established in the second-largest smartphone market globally.
In addition to its impressive home sales, the Cupertino-based company has shattered export records. Industry projections indicate that this year will see a more than 20% growth in iPhone shipments due to strong domestic distribution and manufacturing support.
“Premiumization has begun, and Apple has once again timed its products and finance offerings to capitalize on this trend. In addition, the brand has been growing thanks to its strong brand pull and recent expansion of its channel presence in the nation, according to Tarun Pathak, Research Director at Counterpoint Research.
India’s PLI plan received a significant boost in FY24 when the nation’s mobile phone exports increased significantly while those of manufacturing behemoths like China and Vietnam lagged behind.
China’s mobile phone shipments decreased to $132.5 billion in FY24 from $136.3 billion in FY23. According to the most recent industry data, Vietnam’s GDP decreased from $31.9 billion in FY23 to $26.27 billion in the most recent fiscal year.
India’s mobile phone exports, which are dominated by Apple, increased from $11 billion in FY23 to about $16 billion in FY24.
Industry estimates show that the manufacture of mobile phones increased by 2,000 percent, from an estimated Rs 18,900 crore in 2014–15 to an estimated Rs 4.10 lakh crore in FY24.
The bulk of premium sector customers in India, according to Counterpoint Research, selected a payment plan in order to purchase a smartphone.
“Along with helping consumers own an Apple device at a lower cost, Apple’s long software support and subtle design changes mean older generation devices remain relevant for a longer period of time and help Apple capture share across a wider price segment,” added Pathak.
CyberMedia Research (CMR) Vice President of Industry Research Group Prabhu Ram told IANS that luxury smartphone sales are growing well, despite the industry being mostly driven by low-cost phones. This rise is being driven by an expanding middle class and their increased discretionary income.
“Apple’s high brand salience, heightened manufacturing emphasis, and retail focus in the market are what are driving the company’s growth momentum. India gives Apple a strategic buffer to diversify its manufacturing and revenue sources in light of the growing tensions between the US and China,” he said.
