Apple Expands Presence in India with New Retail Stores and iPhone 16 Pro Manufacturing
In a strategic move to deepen its presence in India, Apple announces plans to open four new retail stores in key cities and initiate the manufacturing of iPhone 16 Pro models within the country. This decision comes as Apple aims to tap into India's growing smartphone market and diversify its production away from China.
The tech giant will be launching stores in Bengaluru, Pune, Delhi-NCR, and Mumbai, adding to its existing outlets in Mumbai and New Delhi. Deirdre O’Brien, Apple’s senior vice president of Retail, expressed excitement about the expansion, highlighting the company's commitment to providing customers with top-notch products and services.
While specific timelines for the new store openings were not disclosed, Apple confirmed the commencement of iPhone 16 production in India. Initially starting with the SE model in 2017, Apple has now expanded its manufacturing capabilities to include the entire iPhone 16 lineup, including Pro models.
Despite the progress, J.P. Morgan analysts noted that Apple's production shift to India is slower than anticipated. The bank forecasts that 20-25% of iPhones will be made in India by 2027, a delay from the previous projection of reaching this level by 2025. Currently, India accounts for an estimated 10-15% of Apple's total iPhone production.
On the business front, Apple's revenue in India saw a significant boost, with a 42% year-on-year increase in 2023 to $8.7 billion. iPhone shipments in India also surged, growing by 39% year-on-year to 9.2 million units, making it one of iPhone's top markets globally.
In fact, India's iPhone business in 2023 surpassed that of any individual country in the European Union, underscoring the country's importance in Apple's global strategy.
In conclusion, Apple's expansion in India presents a lucrative opportunity for both the company and consumers in the region. With the opening of new retail stores and local manufacturing of flagship models, Apple is poised to strengthen its foothold in one of the world's fastest-growing smartphone markets. This move not only signifies Apple's commitment to diversification but also highlights the immense potential India holds for tech giants looking to expand their footprint. By keeping a close eye on Apple's developments in India, investors and consumers alike can gain valuable insights into the company's growth trajectory and potential impact on their finances and technology choices.