He came, he saw, he conquered. That phrase best describes Apple CEO Tim Cook’s quick trip to India earlier this month to open the nation’s first Apple retail outlets. He seemed to be everywhere, whether it was greeting guests at the company’s flagship locations in Mumbai and Delhi, sharing vada pav with Madhuri Dixit, talking code with students, or meeting Prime Minister Narendra Modi.
Industry observers aren’t shocked by this feverish activity, particularly after Cook said, “I’m very bullish on India,” on a recent earnings call. Additionally, he stated, “India has such a beautiful culture and an incredible energy, and we’re excited to build on our long-standing history—supporting our customers, investing in local communities, and working together to build a better future with innovations that serve humanity.” This was said a day before the opening of Apple’s brick-and-mortar store in Mumbai.
It seemed to excite customers who went to the recently established Apple outlets. Gauri Sinho from Delhi University was pleased with the helpful personnel and customer support. Her main attraction was the fact that she could leisurely peruse the extensive selection of items, something she was unable to do at other Apple shops maintained by its channel partners.
Delhi-based This idea was reiterated by Mohit Sahani. “Apple has opened a shop at the airport in Qatar. In order to purchase an aniPhone or any other device from the corporation, one must go to the airport. But this position is much better,” he said.
The apple of India
The iPhone has been the company’s brand symbol since its entry into India 26 years ago, despite the fact that Apple offers a wide range of computer devices, cellphones, accessories, and services. And as time has gone on, demand for the product has only grown.
The market research company Counterpoint Research said that 2018 and 2019 were flat years for iPhones in India, with sales of under two million units each, in Outlook Business magazine’s February 2023 article titled “iPhone for India, iPhone for the World.” While sales of about three million units the following year showed a respectable increase, this took off in 2021.
Cook and other key Apple executives praised the company’s achievements in India during an earnings conference for the September quarter of 2022. According to the company’s CFO, Luca Maestri, “iPhone sales climbed 10% year over year to a record $42.6 billion in the September quarter, despite considerable foreign currency headwinds. We broke records for the September quarter in the great majority of the areas we monitor, and we performed very well in a number of important developing countries, with India breaking all-time records for revenue.
Amazingly, iPhone continued to expand in India despite the nation’s reputation as a price-sensitive market with a sizable Android smartphone user base. While the smartphone brand is seen as an aspirational purchase and frequently an indulgence, things are moving quickly for it in India, if not for Apple’s other products, according to the article titled “iPhone for India, iPhone for the World.”
In the grand scheme of things, the company’s Indian income remains minor in its overall balance sheet. According to Counterpoint, Apple delivered 237.9 million iPhones worldwide in 2021, compared to 5.4 to 6 million devices in India. With a 4% percent of all sales in the December quarter, the market research company discovered that the iPhone 13 had surpassed other top models such the Samsung Galaxy M13, Xiaomi Redmi A1, Samsung Galaxy A04S, and Realme C35, all of which maintained a 3% stake.
Apple may have increased its focus on local production, improving vendor connections, and sprucing up operations in India as a consequence of this expanding popularity. Aware of the changing winds, it also began providing clients with better financing choices and stepped up its marketing efforts.
“There has been a lot done to lower the cost of goods and increase the number of alternatives available to consumers, including financing options and trade-ins. There are many things happening there. We are essentially applying what we learnt in China years ago and how we scale to China, Cook stated in the February 2023 earnings call for the December quarter.
Aside from its retail sector, India is also a strategic manufacturing investment for Apple, which wants to lessen its reliance on China. Setting up a homegrown manufacturing plant would enable it to serve the sizable local iPhone user base and create an export strategy to get around China’s supply chain problems.
According to Counterpoint, India would produce 18% to 20% of all iPhones sold worldwide by 2025, a significant increase from the country’s production of just 3% to 5% in 2021 and 2022, respectively. This creates a challenging win-win opportunity for the organisation.