Indian Economy News

Can't spell iPhone without India: Country set to become tech giant's third-biggest market by 2026

  • IBEF
  • December 30, 2024

India is set to become Apple's third-largest market by 2026, following the US and China. In FY24, Apple’s local sales are expected to increase by up to 20%, reaching around 15 million units, driven by a growing preference for premium products, easier financing options, and significant festival discounts. India ranks as Apple’s fifth-largest market, with Japan and the UK ahead. Despite its rapid growth in India, Apple is facing a decline in market share in China due to the resurgence of local players, particularly Huawei. Apple’s market share in China has dropped from 24% in Q4 FY23 to 14% in Q3 FY24.

As of Q3 FY24, Apple had already shipped 8.5 million units to India, surpassing the total for 2023. The company is expected to add four million units in Q4 FY24, driven by strong demand for the latest iPhones. By 2025, iPhone shipments in India are predicted to reach 14-15 million, with Apple likely breaking into the top five brands. Despite increasing sales, the impact of localisation, reduced import duties, and rationalisation in pricing may moderate Apple’s revenue growth. Apple's average selling price in India has already softened from US$ 1,084 (Rs. 92,874) to US$ 958 (Rs. 82,078) in Q3 FY24, and further decline is expected in 2025. However, Apple's focus on tier two and three cities and its flagship store openings will likely drive further growth in the coming years.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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