India became Apple’s fifth largest iPhone market in the second quarter, according to research released Tuesday, as the U.S. technology giant ramps up distribution and marketing in what CEO Tim Cook sees as a critical future market.
For Apple, India overtook Germany and France for iPhone sales in the June quarter, and is now behind the U.K., Japan, China and the U.S., Counterpoint Research told CNBC on Tuesday. It is the first time India has been one of Apple’s top five markets for iPhone sales.
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Apple has also shifted some iPhone manufacturing to India as it looks to diversify away from China, where the bulk of its flagship smartphone is currently produced.
India’s smartphone market is dominated by low-cost Android smartphones made by Chinese players like Xiaomi as well as Apple’s arch rival Samsung. However, there has been a growth in the premium smartphone segment. Smartphones priced above $400 now account for 10% of the total volumes of handsets shipped versus 4% before the Covid-19 pandemic, according to Counterpoint Research.
Apple’s growth story in India has been a combination of the company’s “overall strategy focusing on distribution and affordability,” Ankit Malhotra, senior research analyst at Counterpoint Research, told CNBC via email.
“The first industry-wide factor is the growth in the premium market in India which Apple has taken advantage of.”
Analysts are excited about the prospects of India for Apple. Morgan Stanley said in a note Monday that Apple could account for 15% of Apple’s revenue growth over the next five years. Analysts at the investment bank forecast revenue growth over then next 10 years in India to stand at $40 billion.
