Apple achieves record sales in India for FY24, boosted by manufacturing expansion and premiumisation
Amid India's emphasis on domestic manufacturing under the production-linked incentive (PLI) scheme, tech giant Apple reported approximately USD 8 billion in sales in the last fiscal year (FY24), marking a nearly 33 per cent increase compared to the previous year.
India is making strides in domestic manufacturing, spurred by the production-linked incentive (PLI) scheme, as China and Vietnam face challenges. Amid this shift, tech giant Apple achieved approximately USD 8 billion in sales in India during the last fiscal year (FY24), marking a nearly 33 per cent year-on-year increase.
According to sources, most of the growth was driven by iPhones amid the premiumisation trend that has solidified in the world’s second-largest smartphone market.
Not just robust domestic sales, the Cupertino-based company has also broken export records and according to industry estimates, iPhone shipments are projected to increase by over 20 per cent this year on the back of domestic manufacturing support and strong distribution.
Tarun Pathak, Research Director at Counterpoint Research, told IANS: "Premiumisation has started and Apple has once again got the timing right to benefit from this trend through its devices and financing offers. Additionally, the brand continues to enjoy the strong brand pull and lately expanding its channel presence in the country which helped it to grow.”
In a major boost to India’s PLI scheme, mobile phone exports from the country gained much ground in FY24 as manufacturing giants like China and Vietnam fell behind.
Mobile phone exports from China went down from USD 136.3 billion in FY23 to USD 132.5 billion in FY24. Similarly, Vietnam saw a drop from USD 31.9 billion in FY23 to USD 26.27 billion in the last fiscal year, according to the latest industry data.
In India, mobile phone exports, led by Apple, from the country touched nearly USD 16 billion in FY24 from USD 11 billion in FY23.
As per industry estimates, mobile phone production surged from Rs 18,900 crore in 2014-15 to an estimated Rs 4.10 lakh crore in FY24, registering an increase of 2,000 per cent.
According to Counterpoint Research, the majority of consumers in India in the premium segment chose a financial scheme to buy a smartphone.
Pathak said, "Subtle design changes and long software support from Apple means older generation devices remain relevant for a longer period and help consumers owning an Apple device at a lower cost and, at the same time, help Apple in capturing share across a wider price segment.”
Prabhu Ram, VP-Industry Research Group, CyberMedia Research (CMR) told IANS that in a market dominated majorly by value-for-money phones, there is good healthy growth for premium smartphones driven by rising disposable incomes among a growing middle class.
"Apple's growth momentum is driven by its strong brand salience, increased manufacturing and retail focus in the market. With rising tensions between the US and China, India offers Apple a strategic hedge to diversify its manufacturing and revenue streams," he noted.
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Inputs from IANS