Apple India saw a boost in phone shipments in the fourth quarter, with 2 million iPhones dispatched, a sequential increase of 18%, but a year-over-year decline of 7%, according to data from CyberMedia Research (CMR).
The report also highlighted that the iPhone 14 series made up the majority of iPhone sales in the October to December period, with a staggering 59% of the market share. The iPhone 13 series trailed close behind, capturing 32% of sales.
Apple’s rise in Q4 2022
Apple had its best year in India in 2022, with a YoY growth of 11% in shipments, securing its highest ever market share of 5.5%. This was achieved by expanding local manufacturing and boosting marketing efforts, tapping into strong demand in the world’s second-largest market.
Despite declining Q4 shipments YoY and QoQ, which impacted the 2022 shipment figures compared to 2021, Apple still saw growth. This was attributed to weak demand caused by high inflation. Analysts estimate Apple’s annual shipments for 2022 to be around 6 million, however, CMR did not provide specific numbers.
Apple, known for its premium pricing, has been gradually increasing its volume market share in India while maintaining its leadership in premium segments. This has been achieved through expanding local manufacturing and aggressive marketing strategies like cash backs and instalment plans. In December 2022, Apple became the first Indian company to export $1 billion worth of smartphones.
India is expected to become a major hub for iPhone manufacturing as the company diversifies production units outside of China due to geopolitical tensions. Industry insiders predict that the percentage of locally-made iPhones will rise to over 20% of total output in value in the next 3-4 years, up from the current 5%.
According to insiders, Apple will ship even more devices in 2023 than it did in 2022
Experts anticipate even higher shipment numbers for Apple in 2023 compared to 2022. The higher-than-expected demand for the new iPhone 14 Pro models has been noted, but supply chain constraints due to COVID resurgence in China, causing longer wait times for the 14 Pro, impacted Apple’s performance and led to a YoY decrease in shipments. Despite this, aggressive marketing and promotions helped drive sales of older iPhones, including the iPhone 13 series.
Speaking on the report, Prabhu Ram, Head of CMR, said,
Apple’s India momentum continues to be on track with a strong headroom for growth in 2023 and beyond. In particular, Apple’s increasing share of upstream value addition under Make in India will fuel India’s strategic growth in the global value chains.