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Tim Cook, Chief Executive Officer (CEO) of Apple greets the media with folded hands outside the Apple Store at Jio World Drive mall, Mumbai, India, April 18, 2023.
Ashish Vaishnav | Soba photos | Light Rocket | Getty Images
India became apples The fifth-largest market for iPhones in the second quarter, according to research released Tuesday, as the US tech giant ramps up distribution and marketing in what CEO Tim Cook sees as an important future market.
For Apple, India overtook Germany and France in iPhone sales in the June quarter and is now behind the UK, Japan, China and the US, Counterpoint Research told CNBC on Tuesday. This is the first time that India is one of Apple’s top five markets for iPhone sales.
According to the research firm, India contributed nearly 4% of all iPhone sales in the second quarter. The company couldn’t reveal the exact number of iPhone sales but said they grew 50% year over year.
Apple accounted for 5.1% market share in the total smartphone market in India in the period to the end of June, compared to 3.4% in the same period last year, according to Counterpoint Research.
The rapid growth in India comes as Apple cements its presence in the world’s fifth largest economy from a retail and manufacturing perspective.
In April, Apple opened its first physical stores in the country in the capital, Delhi, and the populous city of Mumbai.
Apple has also shifted some iPhone manufacturing to India as it looks to diversify away from China, where the bulk of its flagship smartphone is currently being produced.
India’s smartphone market is dominated by low-cost Android smartphones made by Chinese players such as Xiaomi as well as Apple’s arch-rival Samsung. However, there has been growth in the premium smartphone segment. Smartphones priced over $400 now account for 10% of all phone volumes shipped versus 4% before the Covid-19 pandemic, according to Counterpoint Research.
Apple’s growth story in India has been a combination of the company’s “overarching strategy focused on distribution and affordability,” Ankit Malhotra, senior research analyst at Counterpoint Research, told CNBC via email.
“The number one industry-wide factor is the growth in the premium market in India that Apple has benefited from.”
Analysts are excited about India’s prospects for Apple. Morgan Stanley said in a note on Monday that Apple could account for 15% of Apple’s revenue growth over the next five years. Analysts at the investment bank expect revenue growth over the next 10 years in India to be $40 billion.
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