Apple’s India revenue up 42% to $8.7 billion in 2023, says American firm Morgan Stanley

US-based iPhone maker Apple financial performance in India has seen a significant surge, with revenues climbing nearly 42% to reach $8.7 billion in 2023, foreign brokerage Morgan Stanley said in a report on Friday.

The growth is mirrored in iPhone shipments, which grew by approximately 39% to 9.2 million units. Analysts from Morgan Stanley highlighted the increasing importance of the Indian market to Apple, noting that India accounted for 4% of iPhone shipments and revenue, a notable rise from 3% in 2022 and just 1 percent five years prior.

Outpacing competitors

Apple achieved a record-breaking revenue quarter in India in the December quarter of 2023. For the first time, Apple also led in revenue among smartphone brands in India for a calendar year, crossing the 10-million-unit mark in shipments despite the overall smartphone shipments in India remaining flat at 152 million units.

A potential shift in global market dynamics

The report by Morgan Stanley suggests a potential shift in the global market landscape, predicting that if India continues on its current growth trajectory and China's iPhone shipments remain stagnant, India could surpass China as a larger iPhone market by 2027.

The forecast points to the strategic importance of India in Apple's global market strategy and its potential to become a key player in the company's future growth.

Government policies boosting local manufacturing

The Indian government has taken steps to encourage local manufacturing, which directly benefits companies like Apple. In January, the government reduced the import duty on mobile phone parts from 15% to 10%.

The policy change is aimed at making the manufacturing of high-end premium smartphones more feasible in India. Notably, It also aligns with Apple's strategy to increase its production footprint in the country.