Apple Expands Its Footprint in India: New Stores and Local Manufacturing
Apple is making significant strides in India, a market that has emerged as a crucial component of its global strategy. The tech giant has announced plans to open four additional retail stores across the country, further solidifying its presence. In addition, Apple is ramping up its local manufacturing efforts, with the iPhone 16 Pro set to be produced domestically.
Retail Expansion: A Strategic Move
Following the success of its existing stores in Mumbai and New Delhi, Apple aims to expand its retail footprint in India. The company has identified Bengaluru, Pune, Delhi-NCR, and Mumbai as prime locations for its new outlets. This strategic expansion is expected to provide customers with greater accessibility to Apple products and services, fostering stronger connections with the brand.
Deirdre O’Brien on India’s Potential
Deirdre O’Brien, Apple’s senior vice president of Retail, expressed her enthusiasm for the company’s expansion in India. She highlighted the creativity and passion of Indian customers, emphasizing the company’s commitment to providing them with exceptional experiences. While O’Brien did not specify a timeline for the new store openings, the announcement signifies Apple’s confidence in the Indian market’s growth prospects.
Local Manufacturing: A Boost to India’s Economy
Apple’s decision to manufacture the iPhone 16 Pro domestically is a significant milestone. The company has been producing iPhones in India since 2017, starting with the SE model. This strategic shift aligns with Apple’s broader efforts to reduce its reliance on China for production while capitalizing on India’s burgeoning smartphone market.
J.P. Morgan’s Assessment
While Apple’s progress in shifting iPhone production to India is commendable, J.P. Morgan analysts have noted that it is slower than anticipated. They predict that by 2027, 20-25% of iPhones will be manufactured in India, revising their earlier projection of 2025. Currently, Indian production accounts for approximately 10-15% of total iPhone output.
India’s Growing Importance
Apple’s business performance in India has been impressive, demonstrating the market’s growing significance. According to Morgan Stanley, Apple’s revenue in India surged by 42% year-on-year in 2023, reaching $8.7 billion. iPhone shipments also experienced substantial growth, increasing by 39% to 9.2 million units during the same period.
India’s emergence as the fifth largest market for iPhones globally underscores its importance to Apple’s global operations. The country’s outperformance compared to any single European nation in 2023 further highlights its potential as a key growth driver for the tech giant.
FAQs:
How many new retail stores is Apple planning to open in India?
Apple plans to open four additional retail stores in India.
When will the new Apple stores in India open?
Deirdre O’Brien did not specify the exact opening dates for the new stores.
What iPhone model is Apple starting to manufacture in India?
Apple is beginning domestic production of the iPhone 16 Pro.
What percentage of iPhones will be manufactured in India by 2027, according to J.P. Morgan?
J.P. Morgan predicts that 20-25% of iPhones will be manufactured in India by 2027.
How much did Apple’s revenue in India grow in 2023?
Apple’s revenue in India surged by 42% year-on-year in 2023.
