Apple sees highest ever iPhone sales in India, analysts say

by Jonny Evans · November 1, 2023

Apple has generated its highest ever quarterly iPhone shipments in India even while the smartphone industry there remained flat, reveals Counterpoint in its latest slice of research data. In other news, India’s government has cleared Apple to import Macs and iPads into the country.

The removal of the import limits for Apple’s kit should settle an ongoing challenge between Apple and India’s government over PC sales there. The government is controlling what comes in, but rather than a cumbersome approvals and taxation system, it is simply monitoring the trade into 2024. Apple and other PC makers had vigorously opposed India’s plan.

India goes iPhone crazy

While we’ve not had reports yet that people in India have emulated Chinese consumers, who allegedly sold body parts to get hold of iPhone not so many years ago, the direction seems solid.

Counterpoint analyst Shubham Singh said: “Experiencing a high-growth phase in India, Apple recorded 34% YoY growth. Q3 2023 also marked the best quarter for Apple’s shipments in the country, which crossed 2.5 million units. Premiumization has started in the world’s second largest smartphone market and Apple has again got the timing right to benefit from this trend through its devices and financing offers.”

That’s a good direction, but it still leaves the lion’s share of smartphones sold in India as being non-Apple and non-premium, but that is a challenge Apple will face.

Premium phones a-go-go

Analyst Shilpi Jain said: “The premium segment and 5G were the two focus areas and saw multiple launches. Many OEMs are now coming up with interesting financing schemes through partnerships with financial institutions and by marketing the per-day cost of buying a new device. The market is gradually moving towards growth and we are witnessing positive consumer sentiment during festive season sales. India’s smartphone market will experience growth in the coming quarter due to pent-up demand, elongated festive season and faster 5G upgrades.”

Is it plausible to imagine that Apple may be seeking to develop or support development of “interesting financing schemes” to help broaden iPhone adoption there?

All alone in Samsung country

It might. India is, after all. Samsung country, and while only Vivo and RealMe saw the kind of growth Apple enjoyed, Samsung still holds 17.2% share (down from 19.5% in the year ago quarter. Samsung was closely followed by Xiaomi, with its 16.6% market share driven by strong demand for the Redmi 12 series and offline expansion. Xiaomi is effectively capitalizing on the opportunity to provide 5G technology in the budget segment. Its latest Redmi 12 5G series received an overwhelming response from consumers.”

Other key insights

Faster 5G upgrades: In Q3 2023, the share of 5G smartphone shipments reached 53%. The main growth driver was OEMs pushing multiple launches in the INR 10,000-INR 15,000 (~$120-$180) segment. The 5G penetration reached 35% in this segment, compared to 7% in Q3 2022.
Ultra-premiumization trend: The trend of ultra-premiumization (>INR 45,000, ~$540) is steadily gaining momentum with each passing quarter. In Q3 2023, the segment grew 44% YoY driven by the availability of easy financing options, implementation of various incentive programs in the market, and growing consumer aspirations for the latest technology.
Foldables going mainstream: We are observing an increasing demand for foldables in the ultra-premium segment due to their different form factor, which transforms the way we perceive and utilize smartphones. The future looks promising for them as more OEMs are entering the segment.
4G feature phone growth: The share of 4G feature phones in the overall feature phone shipments increased to 32% in Q3 2023 following the launch of the JioBharat platform. Low cost (INR 999, ~$12), features like UPI, and access to a wide variety of apps are the key factors driving this demand.
Other notable brands that grew YoY during Q3 2023 were Nokia (31%), Motorola (27), realme (7%) and Google (6%).