Apple’s success in India remained high between January and March. The iPhone maker remained the market leader in the premium category, which includes smartphones costing more than Rs 30,000.
According to analysts, Apple had a 48-49 percent share of the premium segment with shipments of about a million devices during the quarter; the iPhone 11 remains the Cupertino-based company’s best-selling smartphone in India, with good demand for the iPhone 12.
Apple sold over one million devices in the country in the previous October-December quarter as well. Apple has a 3% market share in the overall smartphone sector, thanks to good sales.
According to analysts and officials, based on current trends, Apple India is expected to achieve revenue of $2.2 billion to $2.4 billion in the current fiscal year. Despite this success, Apple India’s share of the company’s overall sales remains negligible, at less than 1%.
Apple reports its financial numbers from October to September, and for the January-March period, the company reported record revenue of $89.6 billion.
Unlike the rest of the world, Apple’s previous iteration is still the best-selling in India. For example, the iPhone 11 is currently the best-selling model in India, while the iPhone 12 is the best-selling smartphone in other countries. This trend has been going on for a while, and the primary explanation is the low pricing of previous models. According to officials, the iPhone 11, iPhone SE 2000, and iPhone XR are Apple’s top-selling devices in India, and all of these devices are manufactured in the region. Around 65 percent to 70 percent of what Apple sells in India is produced locally, and this figure will soon grow to 75 percent to 80 percent with the local production of the iPhone 12.
Customers save 10% to 12% on the price of the devices if they are manufactured in India. For example, when importing an iPhone, a simple custom duty (BCD) of 22% must be charged, and in addition to the 18% GST, customers must pay 40% taxes on an iPhone. However, if the system is manufactured in India, 22 percent BCD is no longer needed. Since different components are imported, a buyer must still pay taxes ranging from 8% to 10% for PMP (phased manufacturing program).
According to Counterpoint, Apple has maintained its momentum since the fourth quarter of 2020. In the first quarter of 2021, the business grew by 207 percent year on year. “Strong demand for the iPhone 11 is driving this acceleration, as are aggressive offers on the iPhone SE 2020 and expansion of ‘Make in India’ capabilities. For the first time, Apple reported more than 1 million shipments in two consecutive quarters,” according to Counterpoint.
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