Apple’s India IPhone Business Outpaces Individual EU Countries, Morgan Stanley Reports


Apple’s long-term investment in India is proving to be a lucrative move as the company’s iPhone revenue in the country surged by 42% year-on-year in 2023, reaching $8.7 billion, according to a note from Morgan Stanley released on Friday.

Key Takeaway

India’s iPhone revenue and shipments have seen significant growth, with the country now representing 4% of iPhone shipments and revenue, up from 3% in CY22 and 1% five years ago.

India’s Growing Significance in Apple’s iPhone Business

The iPhone shipments in India also experienced substantial growth, increasing by 39% year-on-year in 2023 to 9.2 million units. This surge has positioned India as the fifth largest market for iPhones, surpassing the individual iPhone markets of several European Union countries, as highlighted by Morgan Stanley.

Factors Driving India’s iPhone Growth

The growth in India’s iPhone business can be attributed to the increasing consumer demand for premium devices with higher storage capacity, rather than the latest models. Notably, the average iPhone sold in India in 2023 had approximately 260GB of memory, marking a 26% increase from the previous year, according to Morgan Stanley.

Market Trends and Projections

The top five iPhone models that contributed to the majority of sales in India were the iPhone 13, iPhone 14, iPhone 14 Plus, iPhone 14 Pro, and iPhone 15, collectively accounting for 86% of total sales. Despite the growth, India’s iPhone average selling prices (ASPs) stood at $940 in 2023, which is approximately 10% lower than the global average of $1,045.

Apple’s Outlook on India

Recognizing the potential for further expansion, Apple views India as a significant growth driver for its iPhone business. The company has already established its first two retail stores in the country and is increasingly shifting its iPhone manufacturing operations to India. Morgan Stanley projects that Apple’s revenue in India could reach $40 billion by 2032, underscoring the company’s optimistic outlook for the Indian market.

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