Apple's iPhone sales in India experienced their first annual decline in four years during 2018, with shipments falling by about a quarter in the crucial holiday season fourth quarter. Industry research firm Counterpoint reported that full-year sales for 2018 were projected to be around 2 million units, a significant drop from over 3 million iPhones sold in the previous year. This downturn highlighted the challenges Apple faced in penetrating India's vast consumer market at the time.^[1][2][3] ### Pricing and Competition Hit Sales The sharp decline in 2018 was attributed to several factors, including the high price of iPhones in India, exacerbated by trade tariffs and a weakening rupee. Neil Shah, research director at Counterpoint Research, noted that channel checks indicated sales for the fourth quarter of 2018 were in the range of 700,000 to 800,000 units, down from approximately 1 million units a year earlier.^[1][2] This period, which includes the month-long festive season culminating in Diwali, is typically a peak time for electronics sales.^[1][2][3] Analysts observed that iPhones had become more expensive, and the new features and specifications were not compelling enough for Indian consumers. The robust growth of the Android smartphone market also meant a vast existing user base for competitors, making it harder for Apple to attract new customers.^[1][2][3] Many consumers opted for older iPhone models, which accounted for more than half of the phones sold that year.^[1][2] Despite the volume drop, the high average selling price of these devices meant Apple's overall revenue in India for 2018 was expected to remain flat or slightly higher.^[1] ### Tim Cook Acknowledges "Speed Bumps" Apple CEO Tim Cook addressed the company's performance in India during an earnings call, describing the challenges as "speed bumps along a very long journey."^[1] He acknowledged that sales in India were flat in the fourth quarter of 2018.^[1][2] At the time, analysts largely believed that Apple's strong brand prestige would allow it to regain ground as Indian consumers' spending power continued to grow.^[1] Local manufacturing efforts for some iPhone models were already underway, but the majority of devices were imported, contributing to higher costs due to increased import duties.^[3] The Indian government had raised import duties on smartphones to encourage domestic manufacturing, a move that Chinese and other global manufacturers had largely adapted to by setting up assembly lines in the country.^[3] However, Apple's local assembly was limited to a few models, leaving many of its offerings subject to higher taxes.^[3] This competitive landscape, coupled with a lack of perceived significant innovation in new iPhone releases, further impacted consumer enthusiasm.^[3] ### Apple's Resurgence and Record Growth in 2024 Fast forward to 2024, and Apple's fortunes in India have dramatically reversed, demonstrating robust and consistent growth. The company has achieved record iPhone sales and expanded its market presence significantly. In 2024, Apple's market share in India grew from 6.4% in 2023 to 8.2%, establishing India as its fourth-largest market globally.^[4] Shipments reached a remarkable 12 million units in 2024, marking a substantial 35% year-over-year increase.^[4][5] Apple's performance was particularly strong in the fourth quarter of 2024, where it entered the top five smartphone brands in India for the first time, capturing an 11% market share with 4 million units shipped.^[4][6][7][8] This momentum carried into early 2025, with record first-quarter sales of over 3 million iPhones, reflecting a 36.1% year-over-year growth.^[4] The iPhone 16 series, including the budget-friendly 16e, played a key role in driving these sales.^[4] ### Expanding Footprint and Financial Milestones Apple India's revenue surged by 36% to Rs 67,122 crore (approximately $8 billion) in the 2023-24 financial year.^{[9][10][11][5][12]} The company's net profit also saw a healthy increase of 23%, reaching Rs 2,746 crore during the same period.^[9][11][5] iPhone sales alone contributed an estimated $10 billion in 2024, surpassing the combined sales of major fast-moving consumer goods (FMCG) companies like Hindustan Unilever and Nestle.^[5][13][14] Analysts project that iPhone revenue in India will exceed $10 billion in 2025.^[10] Apple is actively expanding its retail presence and manufacturing capabilities in India. The company opened two new stores in 2023 and plans to introduce four more flagship retail stores in 2025.^{[9][10][15][12]} This strategic expansion, coupled with aggressive marketing, festive discounts, and attractive financing options like EMI and trade-in programs, has made iPhones more accessible to a broader audience across both major and smaller cities.^{[4][16][7][17][15][18][19][20]} ### Premiumization Trend Fuels Future Growth The Indian smartphone market is experiencing a significant "premiumization" trend, with consumers increasingly opting for higher-priced devices with advanced features, including 5G connectivity.^{[4][6][21][7][17][18][22][19][5][20][8]} In 2024, 79% of smartphones sold were 5G models, reflecting this shift.^[4] Apple has capitalized on this trend, leading the premium segment (devices above $600) with a 64% share in Q3 2024, up from 56% a year ago.^[15][22] The iPhone 15 and iPhone 13 models were among the highest shipped in Q4 2024, demonstrating strong demand for both new and older generations.^{[4][6][16][7][22][23][13][20]} Apple's manufacturing operations in India have also grown substantially. In the fiscal year 2024, iPhones worth approximately Rs 1.80 lakh crore were produced in the country, with about 75% of these units exported to international markets.^[24] This local production has not only supported global exports but also boosted domestic sales of iPhones and other Apple products like MacBooks, iPads, and Apple Watches.^[24] Apple CEO Tim Cook has expressed strong enthusiasm for India's performance, highlighting that the country set an "all-time revenue record" for the company.^{[9][10][12][20]} Analysts anticipate that India will become Apple's third-largest market globally by 2026, following the United States and China, with local sales expected to grow by as much as 20% next year.^[15] This outlook signals a sustained period of growth and strategic importance for Apple in the Indian market, a significant shift from the challenges faced in 2018.