Apple is set to strengthen its presence in India, a rapidly growing market for the tech giant, with the opening of four new retail stores and the domestic production of its latest iPhone 16 Pro models. This strategic move comes as Apple aims to diversify its global manufacturing base and tap into the world’s second-largest smartphone market.
The new retail outlets are planned for key cities across India, including Bengaluru, Pune, Delhi-NCR, and Mumbai. These stores will follow the launch of Apple’s first two iconic retail locations in Mumbai and New Delhi, which opened their doors last year. The expansion underscores Apple’s commitment to building a deeper connection with Indian consumers.
“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,” said Deirdre O’Brien, Apple’s Senior Vice President of Retail. “We can’t wait for them to have even more opportunities to discover and shop for our amazing products and services, and connect with our extraordinary, knowledgeable team members.”
While O’Brien refrained from specifying exact timelines for the store openings, Apple’s continued investment in India signifies the company’s recognition of the region’s potential, not only as a retail hub but also as a critical manufacturing base for its flagship products.
Manufacturing the iPhone 16 Pro in India: A Major Milestone
In a bold move to diversify its production capabilities beyond China, Apple has officially commenced the manufacturing of its entire iPhone 16 lineup, including the sought-after Pro models, in India. Apple first began assembling iPhones in the country in 2017, starting with the iPhone SE model. This latest development marks a significant leap forward in the company’s efforts to expand its production footprint in India.
While Apple is making strides in local manufacturing, the transition hasn’t been without challenges. According to J.P. Morgan analysts, the shift in production has progressed at a slower pace than initially anticipated. Current estimates suggest that around 10-15% of global iPhone production is now happening in India, with the expectation that this figure could rise to 20-25% by 2027. This represents a slight delay compared to earlier forecasts, which predicted reaching this level by 2025.
The Indian production of iPhones, while a promising step, has faced hurdles due to the early-stage learning curve and suboptimal operational scale. Despite lower labor costs—estimated to be 25-50% lower than in China—these factors have impacted Apple’s assembly margins in India.
Why India Matters to Apple’s Global Strategy
Apple’s decision to ramp up operations in India is not just about diversifying production but also capitalizing on the country’s booming smartphone market. In 2023, iPhone shipments in India surged 39% year-on-year to reach 9.2 million units, making India the fifth-largest market for Apple’s smartphones. Even more impressively, Apple’s revenue in India climbed 42% year-on-year to a staggering $8.7 billion, according to Morgan Stanley.
India’s iPhone business is now larger than any standalone country in the European Union, underscoring the significance of this market for Apple’s growth strategy. Although Apple briefly captured a double-digit market share in India’s fiercely competitive smartphone sector last year, it has since dipped back into single digits. However, this has not deterred the company from further expanding its retail and production presence in the country.
Looking Ahead: A Long-Term Investment in India’s Future
As Apple continues to invest in India, both in terms of retail expansion and manufacturing, the company is positioning itself for long-term success in this vibrant market. With plans to produce a significant portion of its future iPhone models domestically and four new retail stores on the horizon, Apple is clearly betting big on India’s potential.
The company’s strategy aligns with broader global shifts as major corporations seek to reduce their reliance on China for manufacturing. For Apple, India represents a unique opportunity: a massive and growing customer base, lower labor costs, and a government eager to attract foreign investment.
As Apple deepens its roots in India, the upcoming retail stores and domestic production of its premium iPhone models are just the beginning. With each new store opening, Apple is offering Indian consumers not just the opportunity to purchase its world-class products, but also to experience the brand’s signature customer service and innovation, tailored specifically to local preferences.
For Apple, India is not just a market to sell in—it’s a market to grow with. The future looks bright as Apple embarks on this exciting new chapter in one of the world’s most dynamic regions.
