How does Apple intend to increase its production in India, the most populous country?
Apple is planning to open four new retail stores in India, coinciding with its announcement to manufacture the iPhone 16 Pro locally. This move is part of Apple's strategy to strengthen its presence in the world's second-largest smartphone market, according to TechCrunch.
The U.S. tech giant aims to launch these stores in Bangalore, Pune, Delhi, and Mumbai. These will build upon the success of its first two stores in India, which opened last year in Mumbai and New Delhi.
Deirdre O’Brien, Apple’s Senior Vice President of Retail, stated, "We are excited to grow our team as we prepare to open more stores in India, inspired by the creativity and passion of our customers across the country. We can’t wait for them to have more opportunities to explore our amazing products and services and connect with our incredible, knowledgeable team."
Apple's expansion in India comes as the company looks to diversify its manufacturing away from China and tap into the growing smartphone market in the country.
However, analysts from J.P. Morgan noted in a report last month that Apple's shift to producing iPhones in India is progressing more slowly than initially expected. Currently, the investment bank estimates that 10-15% of global iPhone production takes place in India. While the forecast anticipates this figure to rise to 20-25% by 2027, earlier predictions had suggested this target would be met by 2025.
The production volume of iPhones in India remains lower than in China due to the smaller scale of operations and the early stages of the learning curve. Although labor costs in India are about 25-50% lower than in China, these factors offset the potential savings, according to the investment bank.
Despite these challenges, Apple's business in India, the world's most populous country, is on the rise. The company’s revenue in the region surged 42% year-on-year in 2023, reaching $8.7 billion, as reported by Morgan Stanley earlier this year.
iPhone shipments in India also grew by 39% in 2023, totaling 9.2 million units, making India the fifth-largest market for iPhones globally. Moreover, Morgan Stanley highlighted that the iPhone business in India in 2023 was larger than in any individual European Union country.
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