The company captured 23% of total smartphone revenue share in 2023
The global smartphone major also surpassed the 10-million-unit mark in shipments in India in 2023
The Mint also reported that the iPhone maker’s India revenue just fell short of $10 Bn in 2023
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Cupertino-based tech giant Apple shipped more than 10 Mn iPhones last year, clinching the top smartphone brand by revenue in India, surpassing its Korean rival Samsung, according to a new report by market research firm Counterpoint.
Apple accounted for 23% of smartphone revenue share in 2023, despite capturing just around 6.5% market share by volume – its highest ever – as compared to Samsung which had 18% volume share and 21% revenue share, followed by Vivo with 13% revenue share.
The tech major logged over 50% year-on-year (YoY) growth in smartphone shipment.
“Samsung led the market in 2023 with an 18% share driven by a strong performance of the A series, aggressive marketing in offline, and focussed approach in the premium segment. vivo ranked second with a 17% share and led the affordable premium segment in 2023 driven by CMF (colour, material, finish)-focused V29 series and T series in offline and online, respectively. Xiaomi slipped to the third spot in 2023 but captured the top spot in Q4 2023 driven by its strategy to launch 5G phones in the affordable segment, offline expansion and a leaner portfolio,” said Shubham Singh, research analyst, Counterpoint.
The findings also pointed out that the premium smartphone market, which comprises phones worth over INR 30,000, witnessed a 64% YoY growth, driven by easy availability of financing schemes, which were behind the sales of every third premium smartphone.
“Apple’s focus on India is also aiding the trend, with the brand surpassing the 10 Mn unit mark in shipments and capturing the top position in revenue in a calendar year for the first time, propelled by robust demand for both its latest and older iPhones,” Singh added.
In October last year, Apple reported that its India business recorded a revenue of INR 49.3K Cr (almost $6 Bn) in FY23, marking an increase of 48% from INR 33.3K Cr ($4.03 Bn) in FY22. According to RoC filings, Apple India generates 94.6% of its revenue from sales of products and 5.4% from maintenance and services.
The net profit surged 76% to INR 2,229 Cr in FY23 from INR 1,263 Cr in FY22, as per the filings.
Meanwhile, a separate report by CyberMedia Research (CMR) earlier said that the tech giant’s shipments grew by 68% year-on-year (YoY) in the first half of 2023. Further, during this period, Apple secured 6% of the Indian smartphone market by dominating the premium phone segment prices in the range of INR 50,000 to INR 1,00,000.
As per an ET report, Apple manufactured iPhones worth INR 1 Lakh Cr in India last year. An official told the news publication that the company ‘sharply’ ramped up its production in the country last year versus the year before. As per the report, the freight on board (FOB) value of the Apple devices stood at INR 1 Lakh Cr while the market value of the production stood between INR 1.5 Lakh Cr to INR 1.7 Lakh Cr.
The company manufactured and exported five device models out of India between January and December– iPhone 11, iPhone 12, iPhone 13, iPhone 14 and iPhone 15. The exported ‘Made in India’ phones were worth INR 65,000 Cr.
For quite some time now, Apple has been looking to boost its footprint across the Indian market.
The iPhone maker is reportedly scouting for Indian, Japanese and South Korean suppliers who can provide critical components to its contract manufacturers in India.
Apple is in preliminary talks with potential suppliers capable of custom-designing and producing parts and machinery for original equipment manufacturers (OEMs), as well as those who currently act as contract manufacturers for several global firms.
Several suppliers have already begun investing in new capabilities, machinery and equipment, positioning themselves as potential suppliers to Apple pending an extensive cycle of certification and approvals, according to Mint.
The company also aims to manufacture more than 50 Mn iPhones in India by March annually, as it looks to double down on production in the country as part of its efforts to reduce reliance on China. It aims to meet the target within the next two to three years, with additional tens of millions of units planned to be produced in the following years.
The company’s step away from China is fuelled by ongoing geopolitical tensions between Beijing and Washington DC. Further, the Centre’s lucrative production-linked incentives (PLIs) for manufacturers in the country have also led the company to pivot into India.
In April last year, Apple increased its iPhone production in India from a mere 1% of its total capacity in 2021 to around 7%.
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