Even as India’s Apple iPhone manufacturing capabilities are fast approaching China’s levels, the country’s share of Apple’s global revenue remains significantly lower, primarily due to consumer affordability constraints.
Indian manufacturing facilities generated 14-15% of Apple’s total iPhone output in FY24. Industry analysts estimate this share to grow to 26-30 percent by 2027. Currently, India stands as Apple’s only iPhone manufacturing alternative to China, which includes Greater China Mainland China, Hong Kong, Macau and Taiwan.
Forecasts suggest that India’s iPhone production volume could match China’s within five years. However, Apple’s global operations may take 10-15 years to achieve comparable revenues.
Apple generated a record revenue of $8 billion from India in FY24, but this is just over 2 percent of its global revenue of $391 billion. In contrast, Greater China earned $66.95 billion, up more than 17 percent. Estimates suggest that Apple’s India revenue could touch $11 billion by FY26 after the company’s October-September fiscal calendar.
Apple India vs China
In FY20, China accounted for 14.68% of Apple’s total revenue, while India accounted for 0.66%. Apple’s India revenue includes sales of its product range including iPhones, MacBooks, iPads and services, although local manufacturing figures are not included. Apple IndiaAccounts of
Industry experts informed ET that Apple’s decision to set up manufacturing in India in 2020 is aimed at boosting production amid US-China tensions, despite awareness of limited domestic market potential due to low per capita income. To diversify and develop an export hub.
Apple has emerged as a major global value chain to establish India as its export hub. An official monitoring Apple’s progress under the government’s smartphone PLI scheme said, “Currently, 70 per cent of iPhones are exported and this number will increase to 80-85 per cent as capacity increases. It will happen.”
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While other international phone makers such as Samsung from South Korea and Chinese giants Xiaomi, Oppo and Realme mainly focus on production for the local market, Samsung is India’s second largest smartphone manufacturer after Apple. is an exporter, exporting 30-35% of its domestic production.
Industry experts note that despite India’s considerable market potential, its low per capita income hampers Apple’s revenue growth.
For context, China’s per capita income is five times that of India, making it Apple’s second-largest iPhone market after the US. According to industry data, Apple’s production in India exceeded $9 billion from April to October 2024, with exports reaching nearly $7 billion, setting a record for the company in India.
In India’s mobile phone market, which is the second largest globally, iPhones maintain a modest share of 6-7 percent of the total smartphone market. The remaining 94% consists of Android platform devices from some domestic brands as well as competitors such as Samsung, Oppo, Vivo and Xiaomi.
“This gives Apple a long runway to increase the size of its domestic sales and market share,” one analyst observed. India focuses primarily on iPhones, although Apple’s MacBook laptops have performed well in FY24. While iPhones account for around 52% of Apple’s global revenue of $201.1 billion, industry experts point out that iPhone sales in India account for 65-70% of Apple’s revenue.