Apple Inc. has announced plans to significantly expand its retail presence in India by launching four new stores across major cities, a move that underscores the company’s long-term commitment to the world’s second-largest smartphone market. Simultaneously, the tech giant has begun manufacturing its iPhone 16 Pro models domestically, further diversifying its global production network and reducing reliance on China.
The new stores will be located in Bengaluru, Pune, Delhi-NCR, and Mumbai, adding to the first two outlets Apple opened last year in Mumbai and New Delhi. This growth reflects Apple’s determination to strengthen its presence in India, which has rapidly emerged as one of the company’s most important markets.
Apple’s Growing Presence in India
Apple’s senior vice president of Retail, Deirdre O’Brien, expressed excitement about the company’s expansion in India. “We are thrilled to build our teams as we plan to open more stores in India, because we are inspired by the creativity and passion of our customers across this country,” she said in a statement. “We can’t wait for them to have even more opportunities to discover and shop for our amazing products and services, and connect with our extraordinary, knowledgeable team members.”
Although Apple did not provide exact timelines for when these new stores will open, the announcement has generated buzz among tech enthusiasts in India, who will soon have more access to the Apple retail experience. Apple’s retail stores are known not just for selling products, but for offering hands-on experiences, workshops, and direct customer engagement.
Manufacturing iPhone 16 in India
In a parallel development, Apple confirmed that it has begun producing its iPhone 16 lineup in India, including the high-end Pro models. The company first started manufacturing iPhones in India in 2017 with the iPhone SE model, marking a significant milestone in Apple’s efforts to diversify its global supply chain.
This shift comes as part of Apple’s broader strategy to reduce its dependence on China, especially amid increasing geopolitical tensions and supply chain disruptions. By ramping up iPhone production in India, Apple aims to tap into the rapidly growing smartphone market in the country and align with Prime Minister Narendra Modi’s “Make in India” initiative, which encourages foreign companies to produce locally.
Challenges in India’s iPhone Production
While Apple’s decision to manufacture iPhones in India marks a strategic shift, it has encountered challenges in scaling production. According to a recent report from J.P. Morgan, Apple’s push to increase iPhone production in India has been slower than initially anticipated. The report estimates that iPhone production in India currently accounts for 10-15% of the company’s total output.
Analysts previously projected that 20-25% of iPhone production would be shifted to India by 2025. However, the timeline has now been pushed to 2027 due to factors such as sub-optimal operating scales and India’s manufacturing industry being in the early stages of the learning curve.
Despite lower labor costs in India, which are estimated to be 25-50% of China’s, the benefits are being offset by these early operational inefficiencies. However, as production scales up and operational efficiencies improve, India’s role in Apple’s global manufacturing strategy is expected to become increasingly important.
India: A Rapidly Growing Market for Apple
India’s smartphone market is growing at an impressive rate, and Apple’s business in the country reflects this. According to a report by Morgan Stanley, Apple’s revenue in India surged by 42% year-on-year in 2023, reaching $8.7 billion. Furthermore, iPhone shipments in India grew by 39% during the same period, with 9.2 million units sold, making it the fifth-largest market for iPhones globally.
In fact, Apple’s business in India in 2023 surpassed that of any standalone country in the European Union, highlighting the increasing importance of India in Apple’s global growth strategy.
Future Prospects
Apple’s retail expansion and domestic production efforts come as the company strives to capture a larger share of India’s highly competitive smartphone market. Although the company briefly held a double-digit market share in India last year, it has since fallen back to single digits. Nonetheless, Apple remains committed to increasing its presence in the country.
With plans to open four new stores and ramp up domestic production, Apple is positioning itself for long-term success in India. The company’s continued investment in both its retail and manufacturing infrastructure signals that India will play a central role in its future growth strategy.
As Apple deepens its roots in the world’s most populous nation, the company is poised to benefit from the growing consumer demand for premium smartphones and the increasing adoption of Apple’s ecosystem of products and services. The success of these initiatives will depend on how well Apple can scale its production capabilities and manage the complexities of operating in a market as vast and diverse as India.
Conclusion
Apple’s announcement of four new retail stores and local production of iPhone 16 Pro models in India marks a pivotal moment in the company’s expansion strategy. While challenges remain in scaling production, the company’s commitment to India’s growing market and its strategic shift away from reliance on China underscores the importance of India in Apple’s global ambitions. As the tech giant continues to innovate and invest in the region, its influence in the Indian market is set to rise significantly in the coming years.
