- Apple is expected to see a revenue of over $3 billion in iPhone’s India sales.
- Apple made less than under $2 billion in the year 2020-21.
- Apple now manufactures many iPhone models in India.
Apple may be on its way to making over $3 billion in iPhone sales revenue by the end of this financial year in India, analysts have predicted. Business Standard has cited analysts in its latest paywalled report that iPhone sales in India may grow by more than 50 per cent year-over-year. Apple’s revenue from iPhone sales stands at under $2 billion for the financial year 2019-2020, but industry experts are optimistic about Apple’s growth trajectory in India.
The biggest reason why Apple will end up cornering more than $3 billion in iPhone sales by the end of the fiscal year 2021-2022 is the local manufacturing of flagship iPhones. Apple’s manufacturing partners, Foxconn and Wistron, have doubled down on assembling iPhones in India by 75 per cent in 2021, a dramatic jump from 2017. The increase in iPhone production is a result of the Indian government’s incentive plan that catalyses local production of smartphones.
In India, Apple partners manufacture models such as iPhone 11, iPhone XR, iPhone 12, iPhone 12 mini, and iPhone SE 2020. Only the high-end models, the iPhone 12 Pro and the iPhone 12 Pro Max, are not assembled in India. Although local manufacturing of iPhones has not translated into cheaper prices because of business dynamics Apple follows, the launches have significantly improved. Apple is now able to roll out its new iPhones around the same time as the US and other countries.
Last year, Apple opened its online store in India to sell products, such as iPhone, iPad, Apple Watch, iMac, AirPods, and all other accessories, directly to customers. Since the launch of the online store, Apple has seen tremendous growth in iPhone sales. Apple is likely to open its first physical store in India in Mumbai by the year 2022, according to some early reports.
Earlier this year, during an earnings call for the June quarter, Apple CEO Tim Cook said developing markets, including India, had shown “exceptionally strong growth”. Apple registered a record revenue of $81.4 billion at the end of the quarter. Among all the iPhone models that are available to buy in India directly, the iPhone SE 2020 was touted as a popular iPhone in the earnings call. This also means that Apple will continue to sell affordable iPhone models in India.
“And so we’ve got something for the entry buyer who really wants to get into an iPhone and then something for the pro buyer who wants the very best iPhone that they can buy,” said Cook during the earnings call.
This year, Apple is expected to launch the iPhone 13 series and they are likely to arrive in India at the same time as other markets.