Apple's India Push: New Retail Stores Open, iPhone 16 Pro Production Starts Locally

Apple's India Push: New Retail Stores Open, iPhone 16 Pro Production Starts LocallyApple has announced plans to open four new retail stores in India and has begun local production of the iPhone 16 Pro model, further deepening its presence in the world's second-largest smartphone market. This marks a strong commitment to the Indian market and lays the groundwork for further expansion in this critical market

Apple's India Push: New Retail Stores Open, iPhone 16 Pro Production Starts Locally

Apple has announced plans to open four new retail stores in India and has begun local production of the iPhone 16 Pro model, further deepening its presence in the world's second-largest smartphone market. This marks a strong commitment to the Indian market and lays the groundwork for further expansion in this critical market.

Apple plans to open new stores in Bangalore, Pune, Delhi NCR, and Mumbai, bringing its total store count in India to six. Last year, Apple opened two stores in Mumbai and New Delhi. Deirdre O'Brien, Apple's Senior Vice President of Retail, said in a statement, "We are excited to expand our team and plan for more stores across India, as we are inspired by the creativity and passion of customers across the country. We can't wait to give customers even more opportunities to discover and purchase our amazing products and services and interact with our extraordinary and knowledgeable team members."

In addition to opening new stores, Apple announced that it has started manufacturing its entire iPhone 16 lineup in India, including the Pro models. Apple began manufacturing iPhones in India in 2017, starting with the SE model. This move will help Apple reduce manufacturing costs and better respond to Indian market demand.

However, Apple's production plans in India are moving at a slower pace than previously predicted. In a report last month, JPMorgan analysts noted that current iPhone production in India is estimated to make up 10-15% of the total. The bank expects India to produce 20-25% of iPhones by 2027, two years later than previously anticipated.

According to JPMorgan Investment Bank, iPhone assembly margins are lower in India than in China, "due to insufficient scale, early stage learning curve, which offset the lower labor costs (almost 25-50% of Chinas labor cost)."

Despite these challenges, Apple's business in India is growing rapidly. Earlier this year, Morgan Stanley noted that Apple's revenue in India grew 42% year-over-year in 2023, reaching $8.7 billion. iPhone shipments in India grew 39% year-on-year in 2023, reaching 9.2 million units, making it the fifth-largest smartphone market for the iPhone. Morgan Stanley also stated that Indias iPhone business surpassed any single EU country in 2023.

Apple's investment in India will further drive its growth in the region. With India's rapidly developing economy and growing middle class, the country's smartphone market is expected to continue growing rapidly. By opening new stores, expanding production, and offering more localized services, Apple will be better positioned to capitalize on this opportunity and further enhance its presence in the Indian market.