Apple's big bet on India pays off: iPhone sales surpass Europe, revenue soars to $8.7 billion in 2023
By Team Asianet Newsable | First Published Feb 23, 2024, 7:36 PM ISTApple's big bet on India is starting to pay dividends as the company's iPhone sales in the country surpassed those in any individual European Union country in the year 2023. "India represented 4% of iPhone shipments and revenue in 2023, up from just 1% five years ago. This compares to a 20% share in China, which declined slightly year-over-year," the Morgan Stanley report stated.
Apple's significant investment in India is beginning to pay off, as the country's iPhone sales in 2023 exceeded those of any one nation in the European Union. According to a Morgan Stanley study, Apple's iPhone revenue in India increased 42% YoY in 2023 to $8.7 billion. The robust demand for high-end smartphones in India caused iPhone sales to soar 42% YoY to $8.7 billion in the previous year.
With a 39% increase in iPhone shipments to 9.2 million devices, India is now Apple's fifth-largest smartphone market. Because of this, Apple's iPhone market in India is bigger than that of any one nation in the European Union, such as Germany or France.
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India used to account for just 1% of iPhone shipments and revenue, but in 2023 it accounted for 4% of both. This is in contrast to a 20% share in China, which decreased little over the previous year, according to the Morgan Stanley analysis.
Which are best selling models?
India's strong iPhone growth is mostly due to consumers' growing desire for more expensive, high-capacity smartphones. With a 26% increase from 2021, the average iPhone sold in India last year has almost 260 GB of storage. The average selling price of iPhones in India increased by 2% to $940. With 86% of sales, the best-selling models were the iPhone 13, 14, and 15.
Recent data from market research company IDC provides important insights into the models influencing iPhone growth in India. According to the IDC analysis, in India in 2023, the iPhone 13, 14, 15, accounted for a significant 86% of all iPhone sales.
Although premium gadgets are being purchased by Indian consumers, Apple's approach of offering discounted earlier generation versions is also proving effective. As a result, Apple has increased overall iPhone sales and gained a larger share of the value-conscious Indian smartphone market.
India becomes better market than China
India is moving up the Apple ladder as a result of supply constraints and market saturation in China, where the rise of iPhones has stopped. This rise is driven by consumers' preference for high-end smartphones over the newest versions. This made it possible for Apple to profit from customer demand in a region where prices are crucial, like India.
Apple has been investing more in India recently; last year saw the introduction of its first retail locations. To keep up with demand, iPhone production in India has also been increasing gradually.
Morgan Stanley predicts that by 2032, Apple's income from India would reach $40 billion. The expansion in India is beneficial for a firm that is experiencing supply chain difficulties and market saturation in China.
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