Apple Inc.’s annual sales in India reached a record $9 billion, driven by strong consumer demand for iPhones and MacBooks, as the company significantly expands its retail presence and manufacturing footprint in the country.

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Apple Inc. (AAPL) has reported record annual sales in India, reaching nearly $9 billion in the last fiscal year. This significant achievement underscores robust consumer demand for its flagship devices, particularly iPhones and MacBooks, as the technology giant aggressively expands its retail footprint and manufacturing operations within the country.

The Event in Detail

Apple’s revenue in India rose approximately 13% from $8 billion a year earlier. While iPhones accounted for the majority of these sales, demand for MacBook computers also experienced a notable surge. This growth comes as Apple navigates a period of plateauing global sales and manages geopolitical uncertainties related to its supply chain in China.

In response to the burgeoning market and strategic imperatives, Apple has intensified its retail expansion efforts in India. Following the inauguration of its first two official stores in Mumbai and New Delhi in 2023 by CEO Tim Cook, the company has continued to boost its retail network, including new official outlets in Bengaluru and Pune, with further plans for Noida and Mumbai. The company also launched its official online store in India in 2020 and has reshuffled its management to consolidate India sales operations into its business.

To address the challenge of high taxes that make iPhones particularly expensive in India (e.g., the entry-level iPhone 16 is priced at $906.39 in India compared to $799 in the US), Apple has implemented tailored strategies. These include student discounts, trade-in programs for older devices, and partnerships with banks for credit card rebates, all aimed at boosting sales and market penetration.

Analysis of Market Reaction

Apple’s record sales in India are indicative of a broader strategic pivot. The company’s "China + 1" strategy, driven by the need to diversify its supply chain amidst geopolitical tensions and tariff uncertainties, has positioned India as a crucial hub for both production and consumption. This move is designed to mitigate risks associated with over-reliance on any single manufacturing base and tap into new growth avenues.

India has rapidly become a vital component of Apple’s global supply chain. Currently, one in every five iPhones is manufactured in India, signaling a significant shift in production strategy. The country’s manufacturing output for Apple products surged to $22 billion in the fiscal year ending March 2025, marking a 60% year-on-year increase. This volume now accounts for an impressive 20% of global iPhone production.

Broader Context and Implications

India is emerging as a critical export hub for Apple. In Q2 2025, India surpassed China to become the leading supplier of Apple smartphones to the United States, accounting for 44% of the market compared to China’s 25%. Apple exported $17.4 billion worth of iPhones from India in fiscal year 2025, with approximately 89% of these Indian-made iPhones destined for the U.S. Notably, Foxconn, Apple's primary contract manufacturer, and Tata Electronics are key players in this manufacturing shift, with significant investments and production contributions.

The Indian government’s Production Linked Incentive (PLI) scheme has been instrumental in accelerating this shift by offering financial incentives for domestic manufacturing, attracting substantial investments from not only Apple but also other technology giants.

Expert Commentary

Market analysts remain bullish on Apple’s trajectory in India. Some experts project that Apple’s revenue from India could nearly double to $15 billion by fiscal year 2026 from just two years prior, with continued annual growth estimated at 30% over the next five years. This outlook underscores the long-term potential seen in the Indian market.

Looking Ahead

The strategic importance of India for Apple is set to grow further. The company plans to manufacture the entire iPhone 17 lineup for the U.S. market in India, a historic first, and aims for the majority of U.S.-bound iPhones to originate from India by 2026. This aggressive diversification of production, coupled with continued retail expansion and tailored market strategies, positions India as a blueprint for multinational corporations navigating geopolitical turbulence and seeking new growth avenues. The sustained momentum in India will be a key factor to watch for investors assessing Apple’s future revenue streams and supply chain resilience.