Apple Records Breakthrough Growth in India in 2024, PLI Scheme and Premiumisation Trend Makes the Difference

2024 has been a remarkable year for Apple in India, with the tech giant making new records in exports and domestic sales. This achievement has been fueled by the rising trend of premiumisation, the government’s Production-Linked Incentive (PLI) scheme, and Apple’s aggressive retail expansion. The company’s strategic approach has made India a key market in Apple's global growth story.

Surge in Smartphone Exports and Production

India has emerged as a critical hub for Apple's smartphone production, thanks to partnerships with vendors like Foxconn, Pegatron, and Tata Electronics. In 2024, the country witnessed a 45% increase in smartphone exports, with Apple leading the way. The company’s iPhone production reached an impressive $10 billion in just the first seven months of the fiscal year, with exports contributing to $7 billion.

During the April to October period, Apple’s exports reached nearly $1 billion per month, pushing the company’s presence in the Indian market to new heights. This growth showcases the effectiveness of Apple’s local manufacturing strategy, which supports both domestic demand and exports.

Apple Taps into the Premiumisation Trend

Apple has successfully capitalised on India's growing premiumisation trend, which is driving the demand for high-end smartphones. The rising purchasing power among India’s aspirational youth has been a key factor in Apple’s success. As premiumisation gains momentum, Apple continues to appeal to the country’s affluent consumers with its premium offerings, especially iPhones.

According to industry expert Tarun Pathak, Apple’s strong market presence can be attributed to its ability to connect with India’s youth through effective marketing campaigns and an expanding retail network. Apple’s growth is driven by the availability of financing options that make premium devices more affordable, thereby fueling demand for Apple’s high-end products.

Aggressive Retail Expansion and Market Growth

Apple’s retail strategy has played a pivotal role in its growth. With aggressive expansion across India, the company is set to surpass 11 million shipments in 2024, a 10% increase from the previous year. This robust growth is expected to continue into 2025, with analysts predicting similar growth figures.

In FY24, Apple’s operating revenue in India surged by 36%, crossing Rs 66,700 crore (approximately $8 billion), while its profit also rose by 23%. The company’s success is attributed to a combination of premium product offerings, local manufacturing, and targeted marketing strategies.

As Apple deepens its presence in the Indian market, it is poised to become the third-largest market for the company, surpassing Japan and the UK by 2026. India’s strategic importance for Apple is underscored by its focus on local manufacturing, distribution, and driving premiumisation, making 2024 a pivotal year for the company in India.