Apple’s India revenue surge 33% to $8 billion; China sales cool down

Apple’s annual sales in India reached a record of nearly $8 billion, highlighting a swiftly growing market where the tech giant now manufactures more of its devices and operates two flagship stores.

The revenue in India surged approximately 33% in the 12 months ending March, up from $6 billion the previous year, according to a Bloomberg report.

This increase reflects Apple’s consistent efforts to attract users in India, the world’s fastest-growing large economy. India is pivotal for Apple as it seeks to diversify its manufacturing and revenue streams beyond China, a larger but riskier market due to trade tensions with the US.

Apple’s growth led by sales of its flagship product, the iPhone, still comes on a small base. The Indian smartphone market is dominated by less-expensive Chinese devices using Google’s Android operating system – with iPhones constituting only about 3.5% of the approximately 690 million smartphones in use, according to Counterpoint Research.

Despite being one of its fastest-growing markets, India is still a small market in Apple’s scheme of things, contributing about 2% of its latest fiscal-year sales of $383 billion.

CEO Tim Cook's visit to India last year marked the opening of the country’s first two Apple Stores, offering iPhones, iPads, MacBook computers, and accessories. The expanding middle class in India views Apple products as status symbols, potentially reducing the company’s reliance on Chinese sales, according to experts.

In contrast, Apple’s revenue in China declined to $72.6 billion in the latest fiscal year amid a cooling economy, although iPhone sales rebounded strongly recently due to aggressive retail discounts. Geopolitical tensions have prompted Apple and other global tech firms to pivot towards India as the next growth frontier.

Apple has significantly expanded its manufacturing operations in India, currently producing models including the latest iPhone 15, but not the higher-end Pro and Pro Max versions. Most devices assembled in India are exported. Apple's assembly partners in India doubled production to $14 billion of iPhones last fiscal year, accounting for approximately 14% or about 1 in 7 of its flagship devices.

During Apple's earnings call in May, Cook emphasized ongoing efforts spanning developers, markets, and operational initiatives in India.

Separately, the Competition Commission of India (CCI) recently said that it found Apple exploiting its dominant position in the iOS app market to engage in "abusive conduct and practices," Reuters reported last week. The antitrust regulator found that Apple's App Store restrictions harmed developers and restricted customer choice.