In 2024, Apple achieved remarkable growth in the Indian smartphone market, marking a significant milestone in its global expansion strategy. The company shipped a record 12 million iPhones, a 35% increase from the previous year, securing a 10% market share and placing it among the top five smartphone vendors in India for the first time.
This surge is particularly noteworthy given India’s historically price-sensitive market, which has been dominated by Android devices. Apple’s success reflects a shift in consumer preferences towards premium smartphones, driven by factors such as increased disposable income and the aspirational value associated with the brand.
Declining Demand for Android Smartphones
Conversely, the demand for Android smartphones in India has experienced a downturn. Despite the overall smartphone market growing by 4% year-over-year in 2024, reaching 151 million units, several Android manufacturers faced challenges.
For instance, OnePlus saw its market share decline from 6.2% to 3.6%, registering a year-over-year decrease of 39.3%. This decline can be attributed to intensified competition and a market shift towards premium devices, where Apple has made significant inroads.
Factors Contributing to Apple’s Growth
Several factors have contributed to Apple’s impressive performance in India:
- Local Manufacturing Initiatives: Apple’s commitment to manufacturing in India has played a crucial role in its growth. By producing models like the iPhone 16 Pro and iPhone 16 Pro Max locally through partnerships with Foxconn and Pegatron, Apple has been able to offer competitive pricing and ensure a steady supply chain.
- Retail Expansion: The opening of Apple’s first company-run stores in Mumbai and New Delhi has enhanced brand visibility and provided consumers with direct access to its products and services.
- Product Strategy: The popularity of models such as the iPhone 15 and iPhone 13, which together accounted for 6% of total shipments in the last quarter of 2024, indicates a successful product strategy that resonates with Indian consumers.
Market Dynamics and Future Outlook
The Indian smartphone market is undergoing a transformation, with a growing appetite for premium devices. The average selling price of smartphones reached a new high of $259 in 2024, reflecting consumers’ willingness to invest in higher-quality products.
While Android continues to dominate with a substantial market share, the decline in demand for certain Android brands suggests a shift in consumer preferences. Manufacturers may need to reassess their strategies, focusing on innovation, quality, and value proposition to maintain their market positions.
Apple’s record growth in India signifies not only its successful adaptation to the local market but also highlights the evolving landscape of consumer electronics in the country. As the market continues to mature, competition is expected to intensify, benefiting consumers with more choices and better products.
