The retail expansion strategy has achieved remarkable results, and Apple (AAPL.US)'s sales in India are approaching a record 9 billion US dollars

The Zhitong Finance App learned that after vigorously expanding its retail business, Apple (AAPL.US)'s annual sales in India in the last fiscal year reached a record high of nearly 9 billion US dollars, indicating that as the tech giant increases its retail layout in the world's most populous country, consumer demand for its flagship products continues to grow.

According to people familiar with the matter, in the 12 months up to March, Apple's revenue in India increased by about 13% compared to the 8 billion US dollars in the same period last year. Among them, the flagship product iPhone contributed most of the sales, and demand for MacBook computers also increased dramatically.

This significant increase has given fresh impetus to Apple — its global mobile device sales are currently at a standstill. Although the Indian market still accounts for a limited share of Apple's overall business, the company is continuing to increase its investment in this key future market.

Considering the fluctuating consumption and geopolitical uncertainty in China — Apple's largest overseas market at present — a breakthrough in the Indian market is particularly important. Apple's revenue in China increased by only 4.4% in the June quarter of this year. Although this is the first increase in two years, its market share has been encroached upon by local competitors.

Apple has yet to respond to requests for comment.

As part of plans to expand the Indian market, Apple just added two new stores in Bengaluru and Pune this week, and plans to open new stores in Noida and Mumbai, suburbs of Delhi early next year. In 2023, in view of the growth potential brought about by India's rising income levels and the rise of the middle class, Apple reorganized its international business management and upgraded it to an independent sales area. According to Counterpoint Research analyst Tarun Pathak, the iPhone, which is regarded by many Indians as a symbol of identity, currently accounts for about 7% of the local smartphone market share.

Due to local procurement policies, Apple has not been able to open an iconic store in this South Asian country for many years. As policies were relaxed, Apple launched an online store in India in 2020, and CEO Cook then unveiled the first two physical stores in the financial center of Mumbai and the capital New Delhi in 2023. Since then, the company has continued to expand its retail network and add high-end authorized dealers.

Due to high tariffs, iPhones remain expensive in India — the basic iPhone 16 is priced at 7,9,900 rupees (about $906.39) in India, which is higher than $799 in the US. To this end, Apple introduced measures such as student discounts, trade-in programs, and bank credit card cashback cooperation to stimulate sales. Cook has repeatedly emphasized India as one of Apple's fastest-growing markets.

India has also become a key part of Apple's manufacturing strategy. Currently, one out of every five iPhones in the world is made in India, and Cook plans to make India the main production base for the US market. According to previous reports, Apple is expanding the scale of iPhone production in India through five factories (including two newly put into operation).