Apple just wrapped its strongest iPhone year in India, even as the broader smartphone market barely moved. According to Counterpoint Research, Apple’s share of shipments rose to a record 9% for the full year, up from 7% a year earlier, while India’s overall market hovered at roughly 152–153 million units for a fourth straight year.
The outperformance underscores how Apple is benefiting from India’s premium shift, better channel reach, and aggressive lifecycle management of older iPhone models that extend down to more accessible price tiers via promotions and financing.
Why Apple Outperformed In A Flat Indian Market
Counterpoint attributes Apple’s gains to a tighter product mix and broader availability. Tarun Pathak, the firm’s director for devices and ecosystems, pointed to the combination of portfolio depth, aspirational demand, and wider retail access across both online and offline channels as key drivers.
In practice, that has meant pushing recent flagships alongside still-compelling prior-generation models, backed by trade-in programs, longer EMIs, and bank offers. The strategy allows Apple to capture first-time premium buyers while giving upgraders a clear path—an approach that has expanded the installed base and lifted repeat purchases.
Premiumization Lifts Apple’s Share In India
India’s premium segment kept growing despite flat overall shipments. Smartphones priced above ₹30,000 (around $327) rose 15% year-over-year and reached a record 23% share of total shipments, per Counterpoint. That shift naturally favors brands with strong high-end portfolios, with Apple among the biggest beneficiaries.
Even the festive quarter couldn’t shake the broader slowdown; shipments fell an estimated 8–10% year-over-year. Yet average selling prices moved higher—up 9% for the year—with Counterpoint forecasting another 5% increase in the coming period. The message is clear: fewer units, pricier phones. Apple’s positioning aligns squarely with this trend.
Retail And Manufacturing Muscle Bolster Growth In India
Apple has widened its footprint with a measured but visible retail push, opening more flagship stores and deepening partnerships with large-format electronics chains and neighborhood resellers. A new store in Noida added to a growing presence that started ramping up in 2023, complementing a nationwide network of authorized partners.
On the supply side, Apple continues to scale local manufacturing with partners such as Foxconn, Pegatron, and Tata-owned operations. Increased Indian assembly helps with availability, reduces exposure to import duties, and signals longer-term commitment. Industry analysts also view local production as a springboard for more agile pricing and potential export growth.
Services Pricing Tailored For India Signals Strategic Push
Beyond hardware, Apple is sharpening its services play. The company recently rolled out Apple Creator Studio—a bundle including Final Cut Pro and Logic Pro—at ₹399 a month. That’s roughly 66% cheaper than the U.S. price, underscoring a deliberate India-first pricing approach designed to lock in creators and prosumers.
Services traction matters because it raises lifetime value and makes switching harder. Apple executives have highlighted all-time revenue records and a growing active installed base in India on recent earnings calls, suggesting that the ecosystem effects—iCloud, Apple One, Apple TV+, Apple Music—are beginning to compound.
Competitive Landscape And Outlook For India’s Smartphone Market
Volume leadership in India remains with Android players. Counterpoint estimates Vivo led shipments with 23%, followed by Samsung at 15% and Xiaomi at 13%. Apple’s record year still kept it outside the top three by units, a reminder that India is primarily a value-driven market even as premium demand swells.
Looking ahead, Counterpoint expects India’s smartphone market to slip about 2% as rising memory prices pressure sub-₹15,000 devices. Brands may trim cashback offers, tweak specifications, or raise prices to cope. Even so, premiumization looks durable, with ASPs set to climb further—conditions that continue to play to Apple’s strengths.
The bottom line: in a flat market, Apple is growing by selling fewer, more expensive, and more integrated experiences—precisely the playbook that turned iPhone into a profit engine elsewhere. If local manufacturing deepens and services momentum holds, India could become one of Apple’s most strategically important growth pillars.
