Can Indian Really Be An Engine Of Apple Sales Growth ?

Since Apple is struggling to increase sales in its traditional market like the US , China and Europe so It trying to find new markets to maintain the sales growth. For this purpose in March 2024 Apple CEO visited India and inaugurated an Apple store In Mumbai. In 2023 apple sales in India were $8.7 billion. And Tim Cook seems very happy with the growth of the company in India and he is optimistic that the company will keep growing at double digit in coming years.

Can India Grow at Double Digit ?

Indian is one of the fastest growing economies around the world, the income of Indians is rising. And the people over in India would love to have iphones or things like macbook and apple watch. But the issue for most of the Indians would be they will not be able to afford it because of their income level. The only portion of the society would be able to be elite class and upper middle class. That would be the tiny proportion of the Indian population only 23% earn above $10000. And 2% percent earn above $100000. 

But Because Apple has such a low base of their sales it just started to pay attention in the market for the first couple of years. It will go at a good pace of double digit growth, its sales could be 20 $ billion in the next 5 years. But post this it would be harder to grow. 

Indian is not American or China

India is not a very rich country. The income level over here is very low per Capita income in India is just above $2300. Even those who are able to buy Apple products for the first time but they never are able to replace their product with a new model. The major source of growth would be the people who buy Apple products for the first time. Yes it may help apple to maintain its overall sales this is not going to have any substantial impact on overall sales. 

How Bigger impact would be in terms of overall sales:

Apple sales of india is total 2%of the overall sales even apple Grow at 20% in India this is not going to have any significant impact on over sales major market still be china, Europe and us where the customer seems to be not very much interested in Replacing Apple products with their New model. They want bigger changes than just some feature change in mobile phones

Will Apple be able to Deliver upon their customers need to keep growing and if how its share is going to behave.Read my article.

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