For decades, India was a paradox for Apple. A nation with a burgeoning middle class, a massive youth demographic, and an insatiable appetite for technology, yet Apple’s presence remained marginal. The high price point of its devices, coupled with a fiercely competitive market dominated by more affordable Android alternatives, relegated the iPhone to a status symbol for a select few. The company’s retail footprint was limited, and its manufacturing activities were, until recently, almost nonexistent.
However, in the last few years, a tectonic shift has occurred. Apple has embarked on an unprecedented push into the Indian market, a multi-pronged strategy encompassing manufacturing, retail, and sales. This is not just a standard market expansion; it’s a strategic reorientation, driven by a confluence of global economic and geopolitical factors, and is positioning India to become a cornerstone of Apple’s future.
The results are already staggering. In fiscal year 2025, Apple’s annual sales in India reached a record of nearly $9 billion, a 13 per cent increase from the previous year. This growth is a beacon of hope for a company facing slowing smartphone demand in other key regions, most notably China.
The “Make in India” initiative has been a pivotal catalyst. The Government, through policies like the Production-Linked Incentive (PLI) scheme, has created a compelling environment for electronics manufacturing. For Apple, this offers a crucial hedge against geopolitical risks and supply chain concentration in China.
The shift is tangible: today one in every five iPhones is made in India, and projections indicate this figure could rise to 32 per cent by next year. This isn’t just about assembling devices; it’s about building a robust and resilient supply chain ecosystem.
Apple’s India sales hit a record $9 billion in FY 2024-25, offering a bright spot as demand slows in other major markets
Apple’s manufacturing partners, including Foxconn and Pegatron, have invested heavily in setting up or expanding facilities in states like Tamil Nadu and Karnataka. This move not only insulates Apple from potential disruptions but also creates thousands of jobs and strengthens India’s position as a global manufacturing hub.
The second pillar of this strategy is the direct engagement with the consumer. For years, Apple relied on third-party resellers, which often resulted in a fragmented and inconsistent brand experience. The opening of its official online store in 2020 marked a turning point, providing a direct channel for sales and customer support.
The real game-changer, however, has been the inauguration of its first fully-owned physical retail stores. The long-awaited opening of Apple BKC in Mumbai and Apple Saket in New Delhi in 2023 was followed by new stores in Bengaluru and Pune in 2025.
These are more than just stores; they are meticulously designed brand temples that offer the full Apple experience, including hands-on product demonstrations, “Today at Apple” sessions, and the Genius Bar for technical support. This retail push is directly correlated with the surge in sales, as it builds brand loyalty and provides an immersive environment for customers to experience the premium quality of Apple’s products.
The company has also fine-tuned its sales strategy to appeal to the Indian consumer. Recognising the price sensitivity of the market, it has become more aggressive with promotional offers. Partnerships with banks for credit card rebates, student discounts, and trade-in programmes on older devices have made the high-ticket iPhones more accessible.
The success of this strategy is evident in the data. While the overall smartphone market growth in India is modest (at 0.9 per cent year-over-year in the first half of 2025), Apple’s shipments grew by an impressive 21.5 per cent in the same period, with the iPhone 16 being a particularly strong performer. This indicates that Apple is not just selling more units but is effectively converting a larger share of the market, particularly in the premium segment.
The road ahead is not without its challenges. While the manufacturing shift is accelerating, it has faced hurdles, including infrastructure bottlenecks and a less mature supply chain ecosystem compared to China. Quality control has also been a concern in some initial phases of production.
On the consumer front, while a growing number of Indians aspire to own an iPhone, its market share remains relatively small at about 7 per cent of all smartphones. The sheer scale and dominance of competitors offering a wide range of devices at different price points mean that Apple must continue to innovate and adapt its strategies to penetrate deeper into the market.
Ultimately, Apple’s big push in India is a masterclass in strategic patience and adaptation. It’s a story of a global giant recognising a major market opportunity and systematically dismantling the barriers that once held it back.
From an almost non-existent manufacturing footprint to a critical global hub, and from a niche luxury brand to a rapidly growing consumer phenomenon, Apple’s journey in India is a testament to the country’s rising economic might and its pivotal role in shaping the future of global technology.
While the iPhone remains the primary driver of Apple’s success in India, the company’s long-term strategy is much broader: it’s about building an entire digital ecosystem.
The sales figures for MacBooks, for example, have also seen a significant surge, indicating that consumers are not just buying a phone but are investing in a cohesive suite of Apple products.
The App Store is another vital component of this strategy. In 2024, billings and sales facilitated by the App Store in India amounted to more than ₹44,447 crore (approximately $5.31 billion). This demonstrates that Apple is creating multiple revenue streams beyond hardware sales and is fostering deeper customer relationships.
This ecosystem approach is crucial for retaining a loyal customer base. Once a user is integrated into the Apple ecosystem — using an iPhone with an Apple Watch, a MacBook, and services like Apple Music and iCloud — they are far less likely to switch to a competitor.
Apple has been actively promoting these services in India through various localised campaigns and offers. The “Today at Apple” workshops, hosted at its physical stores, are a clever marketing tool designed to educate customers on how to get the most out of their devices and services, further strengthening the ecosystem’s appeal.
By building a comprehensive digital economy, Apple is ensuring that its growth in India is not just a fleeting trend but a sustainable, long-term play.
Apple’s retail expansion in India was held back for years by a significant policy hurdle: India’s local sourcing requirements for foreign single-brand retailers. The policy mandated that companies had to source at least 30 per cent of their products from within the country to open their own company-owned stores.
This was a major obstacle for Apple, as its supply chain was almost entirely based outside India. The Government’s Production-Linked Incentive (PLI) scheme for electronics manufacturing, introduced in 2020, was a strategic pivot that effectively addressed this issue.
By incentivising Apple and its partners to manufacture in India, the Government created a situation where Apple’s local sourcing would organically increase. This subtle but crucial policy shift, combined with other relaxations, paved the way for Apple to finally open its iconic stores.
This historical context highlights the intricate dance between multinational corporations and national governments. For Apple, it was about proving its commitment to the Indian market through manufacturing investments.
For the Indian Government, it was about attracting foreign investment and building a domestic manufacturing base. The result is a mutually beneficial partnership that has unlocked a new era of growth for Apple in the world’s most populous democracy.