Apple India Aims for INR 70,000 Crore Revenue Milestone

Apple will begin production of its next iPhone in India, simultaneously with its vendor plants in China and other locations

March 4, 2024

This marks the second consecutive year of over 40% sales growth for the iPhone maker, with analysts predicting a continued high double-digit expansion

Experts anticipate more widespread growth across categories for Apple in India, projecting a growth rate of 20-30% for the next two to three years

iPhone sales have outperformed, showing growth of over 60%

iPhone shipments in India surpassed 10 million units in 2023, contributing to Apple's capture of the top position in smartphone revenues in the country for the first time in a calendar year

Apple India is poised to achieve revenue exceeding INR 70,000 crore in the fiscal year ending March, marking the second electronics brand to reach this milestone after South Korean rival Samsung. According to two industry executives, Apple India surpassed the $8 billion (INR 66,000 crore) sales threshold in February. This marks the second consecutive year of over 40% sales growth for the iPhone maker, with analysts predicting a continued high double-digit expansion, albeit at a potentially slower pace in the coming years.

The mentioned data pertains to domestic sales, where iPhones constitute 90-92% of the total. Notably, iPhone exports are not included in Apple India’s financial records, as these transactions are considered global deals, and the local unit functions solely as a sales entity.

In the fiscal year 2023, Apple India reported sales of INR 49,321 crore, reflecting a 48% increase from the previous year. The net profit also saw a substantial surge of 76%, reaching INR 2,229 crore, as per Registrar of Companies (RoC) filings. In comparison, Samsung India recorded sales of INR 98,924 crore in FY23, with the mobile phone business contributing INR 70,292 crore. Samsung’s net profit for FY23 stood at INR 3,452 crore.

Apple is set to commence production of its next iPhone in India, simultaneously with its vendor plants in China and other locations. The Indian plants are undergoing preparations for trial production, with the three iPhone contract manufacturers in India being Foxconn, Pegatron, and Tata-owned Wistron. These manufacturers collectively produced iPhones worth over INR 1 lakh crore in India in calendar year 2023. However, the higher-spec Pro models will not be manufactured in the country, citing lower demand and a strategic approach to enhancing the technical capabilities of manufacturing partners gradually.

Despite Apple India not responding to queries, Counterpoint research director Tarun Pathak noted that iPhone sales have outperformed, showing growth of over 60%. Other categories, such as tablets and laptops, reported slower growth or sales in the current fiscal year. Pathak anticipates a more widespread growth across categories for Apple in India, projecting a growth rate of 20-30% for the next two to three years.

In a noteworthy achievement, iPhone shipments in India surpassed 10 million units in 2023, contributing to Apple’s capture of the top position in smartphone revenues in the country for the first time in a calendar year, according to Counterpoint. The research also highlighted Apple as the only company among the top five smartphone brands to register global growth in calendar year 2023, with substantial contributions from emerging markets such as India, Caribbean, Latin America, Middle East, and Africa.

Source: Economic Times

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