Apple’s long-term wager on India is starting to pay dividends. The corporate’s income in India jumped 42% year-on-year in 2023 to $8.7 billion, Morgan Stanley wrote in a observe on Friday.
The iPhone shipments in India grew 39% year-on-year in 2023 to 9.2 million items, making it iPhone’s fifth largest smartphone market. India’s iPhone enterprise is now bigger than any standalone nation within the European Union, Morgan Stanley added.
“Because of this in CY23, India represented 4% of iPhones shipments and income, up from 3% in CY22 and 1% 5 years in the past. This compares to China iPhone shipments, which represented 20% of iPhone shipments and income in CY23 (down 1-2 factors Y/Y, respectively),” the analysts wrote.
“In the end, which means that India as a standalone market remains to be not large enough to offset the declines we’re seeing within the Chinese language market at this time, but when India continues to develop on the similar trajectory whereas China iPhone shipments keep flat, India could be a much bigger iPhone market than China by 2027.”
Driving India’s iPhone progress is rising shopper demand for premium units with extra storage capability moderately than the most recent fashions. The typical iPhone bought in India final 12 months had round 260GB of reminiscence, a 26% enhance over 2022, Morgan Stanley mentioned. India’s iPhone common promoting costs (ASPs) grew 2% year-on-year to $940 in 2023.
The highest 5 iPhone fashions shipped within the nation had been iPhone 13, iPhone 14, iPhone 14 Plus, iPhone 14 Professional and iPhone 15 and so they made up 86% of complete gross sales, in response to knowledge from analysis agency IDC, cited by Morgan Stanley. At $940, India’s iPhone ASPs nonetheless path the worldwide common of $1,045 by round 10%.
Apple sees India as a serious progress engine going ahead, opening its first two retail shops within the nation final 12 months. The corporate can be more and more shifting its iPhone manufacturing to the South Asian nation. Morgan Stanley estimates the tech large’s India income will attain $40 billion by 2032.