Apple Deepens Its Presence in India: Opens Four New Retail Stores and Starts Production of iPhone 16 Pro

Apple Deepens Its Presence in India: Opens Four New Retail Stores and Starts Production of iPhone 16 ProApple is further deepening its presence in India, the world's second-largest smartphone market, with plans to open four new retail stores and having commenced local production of the iPhone 16 Pro model. The American tech giant intends to open stores in Bengaluru, Pune, Delhi-NCR and Mumbai

Apple Deepens Its Presence in India: Opens Four New Retail Stores and Starts Production of iPhone 16 Pro

Apple is further deepening its presence in India, the world's second-largest smartphone market, with plans to open four new retail stores and having commenced local production of the iPhone 16 Pro model.

The American tech giant intends to open stores in Bengaluru, Pune, Delhi-NCR and Mumbai. This expansion follows the launch of its first two stores in India last year in Mumbai and New Delhi. "We are thrilled to be expanding our team alongside plans to open more retail stores in India because we are inspired by the creativity and passion of Indian customers," Deirdre O'Brien, Apple's senior vice president of retail, said in a statement. "We can't wait for them to have even more opportunities to discover and explore our amazing products and services and connect with our exceptional, knowledgeable team members." She did not provide a specific timeline for the new store openings.

Apple also confirmed that it has begun manufacturing its entire iPhone 16 series, including Pro models, in India. The company began producing iPhones in India in 2017, starting with the SE model. These moves come as Apple seeks to diversify its production away from China and tap into India's growing smartphone market.

However, JPMorgan analysts noted in a report last month that Apple's push to move iPhone production to India is proceeding slower than previously anticipated. The bank said that iPhone production in India is currently estimated to account for 10%-15% of total output. The iPhone maker's market share in India's smartphone market briefly crossed the double-digit mark last year, but has since fallen back into the single digits. The investment bank anticipates that 20%-25% of iPhones will be produced in India by 2027, a slower pace than its previous prediction of achieving that level by 2025.

In India, iPhone assembly margins are lower than in China, "due to suboptimal scale and being earlier in the learning curve, which are factors that offset lower labor costs (about 25-50% of China's)."

Despite this, Apple's business in India, the world's most populous nation, continues to grow. In early 2023, Morgan Stanley said that the company's revenue in India jumped 42% year-on-year to $8.7 billion. iPhone shipments in India in 2023 rose 39% year-on-year to 9.2 million, making it the fifth-largest smartphone market for iPhones. Morgan Stanley added that the size of the Indian iPhone business in 2023 exceeded any single EU country.