• Apple Inc. is expanding its retail presence in India, with new stores planned in Bengaluru, Pune, Delhi-NCR, and Mumbai.
• The tech giant is also manufacturing the entire iPhone 16 lineup in India, aligning with the "Make in India" initiative.
• Apple's India operations reached $23.5 billion in value in the last fiscal year, with iPhone exports surging to $12.1 billion.
• The company's expansion strategy in India is a strategic move to boost sales, exports, and brand image in one of the world's largest smartphone markets.

Apple Inc., the renowned tech giant, is set to broaden its retail footprint in India, a move inspired by the encouraging response to its existing stores in Mumbai and Delhi. The company is preparing to launch more exclusive, own-branded stores in the country, where it is experiencing a surge in both domestic sales and export figures. The new retail stores are planned for Bengaluru, Pune, Delhi-NCR, and Mumbai. However, the company has not yet disclosed a specific timeline for their launch.

Deirdre O'Brien, Apple's senior vice president of Retail, expressed the company's enthusiasm about the expansion. She stated, "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 further added, "Our stores are incredible places to experience the magic of Apple, and it's been wonderful to deepen our connection with our customers in India."

Apple's Manufacturing Strategy in India

Recent fire at Tata Group's Apple iPhone component plant in Hosur, Tamil Nadu ahead of a festive season sales surge disrupted plans forcing Apple's suppliers to arrange critical parts from China or elsewhere.The weekend blaze has caused an indefinite production halt at Tata's Hosur plant in Tamil Nadu, the only Indian supplier of iPhone back panels and some other parts for both contract manufacturer Foxconn in the country and its own iPhone assembly at another plant.

But Apple's decision to expand its retail presence in India is not just about increasing sales. It's also about manufacturing. The tech giant is now manufacturing the entire iPhone 16 lineup, including iPhone 16 Pro and iPhone 16 Pro Max, in India. The India-made iPhone 16 Pro and Pro Max will soon be available for local customers and for export to select countries across the world. This move aligns with India's Make in India initiative and helps Apple diversify its manufacturing base, reduce dependence on other regions, and potentially access new customers with locally made products.

Apple's manufacturing presence in India is contributing significantly to its growth strategy. The company reached more than $5 billion in iPhone exports from India in the April-August period of the current fiscal year, a growth of over 50 per cent from the same period of the first five months in FY24. The iPhone exports from India surged sharply to $12.1 billion in 2023-24 from $6.27 billion in 2022-23. Overall, the company's India operations reached 23.5 billion dollars in value in the last fiscal (FY24).

Apple's Growth Prospects in India

The company's revenues in India are likely to grow 18 per cent (year-on-year) in 2024. Last year, Apple clocked almost 10 million iPhone sales in India, its highest ever in the country. This year, this figure is set to grow to over 13 million units.

Apple's expansion in India is reminiscent of its growth strategy in China, where it has been a dominant player in the smartphone market for years. However, Apple's revenue in China declined to $72.6 billion in the latest fiscal year due to economic slowdown, although recent months have seen strong iPhone sales thanks to significant discounts by retailers.

This historical event underscores the importance of diversifying markets and adapting to local conditions, lessons that Apple seems to be applying in its India strategy.