India has emerged as a key market for Apple, not only in terms of sales but also manufacturing. The country’s preference for iPhones, especially in smaller tier-2 and tier-3 cities, has propelled Apple’s market presence. A recent report from the Economic Times reveals that over 60% of Apple’s sales in India are now originating from these smaller cities.
Traditionally, Apple concentrated its efforts on major metropolitan areas, relying on premium resellers. However, the pandemic prompted a shift in consumer behaviour, with increased online purchases and a surge in demand for premium smartphones. Apple responded by revising its sales network and turning its attention to smaller cities.
Apple Sold 90 Lakh Smartphones In 2023 of which 60% of its sale was from tier-2 and tier-3 Cities
Aap Kaunse City se Belong karte ho??
— Techno Ruhez (@AmreliaRuhez) December 18, 2023
To cater to the changing dynamics, Apple forged online partnerships with various e-commerce platforms, a departure from its previous focus on metropolitan cities. The company’s online store, launched in 2020 during the pandemic, facilitated direct customer service throughout India. Collaborations with retail chains such as Croma and Reliance Digital further expanded the reach of Apple devices to previously underserved areas.
E-commerce and Financial Accessibility
The surge in online purchases was also supported by the availability of no-cost EMI options through platforms like Amazon and Flipkart, as well as Apple’s banking partners. This financial flexibility was a departure from the limitations imposed by premium reseller offline chains, making Apple products more accessible to a broader consumer base.
Despite not commanding a high market share in India’s smartphone industry, Apple’s CEO, Tim Cook, has identified India as a major focus for the company. With over 9 million iPhones sold in India in 2023, and more than 60% of sales coming from tier-2 and tier-3 cities, Apple is poised for further growth. The company has achieved a revenue milestone of Rs 50,000 crores in the current fiscal year, showcasing consistent growth and a doubled revenue compared to 2020.
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