Analysts claim that Apple is increasing its presence in India while shifting its attention away from China. Two days after opening its first retail location in Mumbai, the iPhone manufacturer is scheduled to unveil a second one in Delhi on Thursday. According to analysts, it may take up to 10 years for India to overtake China as the world’s leading producer of Apple products. Analysts emphasized that despite the promise for India, Apple’s dependence on China would continue for years to come. The urgency of Apple’s attempts to shift manufacture out of China has increased in recent years as a result of the trade disputes between the US and China and the supply chain disruptions brought on by Beijing’s zero-Covid policy. However, it is very doubtful that Apple would be able to totally eliminate its dependence on China owing to the cost structures and logistics of certain Chinese suppliers.
According to figures from the International figures Corporation (IDC), India represents over 12% of the global smartphone industry and is the second-largest market for yearly shipments and sales. From barely 1% in 2021, Apple now produces 5% to 7% of its iPhones in India. Apple has ambitions to strengthen its presence in India, and it is envisaged that India would significantly contribute to Cupertino’s incremental development in the next years. Analysts contend that achieving 10% to 15% of manufacturing looks more feasible in the long run, despite the Indian government’s declaration in January that Apple aims to produce 25% of all of its iPhones in India.
According to IDC statistics, Apple only has a 5% market share in India because customers continue to choose low- to mid-priced smartphones. However, Nitin Soni, senior director at Fitch Ratings, predicts that the country’s growing technological adoption and consumers’ increased purchasing power would lead to greater iPhone sales. According to Soni, India’s growing middle class is becoming richer and moving up to the upper middle class, and buyers are increasingly purchasing flagship smartphones. The fact that 4G is now widely accessible across India also helps.
Navkendar Singh, an associate vice president of IDC India, believes that Apple is unlikely to reduce the cost of its goods in India. Since buyers would be prepared to pay more for Apple goods, lower labor costs in India would not lower the price of Apple’s iPhones. Apple won’t reach the “price point of the mass market,” according to Singh. To lower the cost of its goods, the corporation may provide promotions or partnerships with banks.
