Apple Inc. is set to strengthen its foothold in India by opening four new retail stores and commencing domestic manufacturing of the iPhone 16 Pro models. This initiative marks a significant step for the tech giant in one of the world’s fastest-growing smartphone markets.
The new stores will be located in Bengaluru, Pune, Delhi-NCR, and Mumbai, expanding on the company’s existing outlets in Mumbai and New Delhi, which opened last year.
Deirdre O’Brien, Apple’s Senior Vice President of Retail, expressed enthusiasm about the company’s growth in India. “We are inspired by the creativity and passion of our customers across this country. We look forward to providing even more opportunities for them to discover and shop for our exceptional products and services while connecting with our knowledgeable team members,” she stated, although specific timelines for the new store openings were not provided.
In addition to retail expansion, Apple has confirmed that it has begun manufacturing its entire iPhone 16 lineup in India. The company initiated its local manufacturing efforts in 2017 with the iPhone SE model.
This move is part of Apple’s broader strategy to diversify its production away from China and capitalize on India’s expanding smartphone market. However, a recent J.P. Morgan report indicated that the shift to local production is progressing more slowly than expected, with current production in India estimated at just 10-15% of total output. The bank anticipates that this figure will grow to 20-25% by 2027, a delay from earlier projections of achieving this milestone by 2025.
Despite these challenges, Apple’s business in India is thriving. According to Morgan Stanley, the company’s revenue in India soared by 42% year-on-year in 2023, reaching $8.7 billion. iPhone shipments also grew by 39% year-on-year, totaling 9.2 million units, making India the fifth largest market for iPhones globally. Notably, Apple’s Indian revenue now exceeds that of any individual country in the European Union.
As Apple continues to deepen its presence in India, the company is well-positioned to meet the increasing demand for smartphones in this vibrant market.
Philips Babatunde