Apple CEO Tim Cook folds his hands to greet the media outside the Apple store at Jio World Drive mall in Mumbai, India, April 18, 2023.
Ashish Vaishnav | Ashish Vaishnav Sopa Images | Light Rocket | Getty Images
india becomes apple Apple will be the fifth-largest iPhone market in the second quarter, according to research released Tuesday, as the U.S. tech giant ramps up distribution and marketing in what Chief Executive Tim Cook sees as a key future market strength.
As far as Apple is concerned, India surpassed Germany and France in second-quarter iPhone sales and now trails the U.K., Japan, China and the U.S., Counterpoint Research told CNBC on Tuesday. This is the first time that India has become one of the top five markets for Apple’s iPhone sales.
According to the research firm, sales in India accounted for nearly 4% of total iPhone sales in the second quarter. The company couldn’t disclose the exact number of iPhone sales, but said it was up 50% year-over-year.
Counterpoint Research said Apple had a 5.1% market share of the total smartphone market in India as of the end of June, compared to 3.4% a year earlier.
India’s rapid growth comes as Apple strengthens its presence in the world’s fifth-largest economy from a retail and manufacturing standpoint.
In April, Apple opened its first physical stores in the Indian capital Delhi and populous Mumbai.
Apple is also shifting some iPhone production to India as the company looks to diversify away from China, where most of its flagship smartphones are currently made.
The Indian smartphone market is largely dominated by low-cost Android smartphones from Chinese manufacturers such as Xiaomi, as well as Apple archrival Samsung. However, the high-end smartphone market saw growth. Smartphones priced over $400 now account for 10% of total handset shipments, up from 4% before the Covid-19 pandemic, according to Counterpoint Research.
Ankit Malhotra, senior research analyst at Counterpoint Research, told CNBC via email that Apple’s growth story in India is a combination of the company’s “overall strategy focused on distribution and affordability.”
“The first industry-wide factor is the growth of the premium segment in India, which Apple has capitalized on.”
Analysts are excited about Apple’s prospects in India. Morgan Stanley said in a note Monday that Apple could account for 15 percent of its revenue growth over the next five years. Analysts at the investment bank forecast India’s revenue growth of $40 billion over the next 10 years.
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