India Poised to Become Apple’s 3rd Largest Market by 2026

 

Apple is gearing up for a major milestone as India is set to become its third-largest market by 2026, following the US and China. According to reports, Apple’s local sales in India are projected to grow by 20% in the coming year, fueled by rising demand for premium products among the country’s expanding middle class.

 

India’s Rapid Ascent

Currently ranked fifth in Apple’s global markets, behind Japan and the UK, India is quickly climbing the ladder. The surge is driven by increasing disposable incomes and a growing appetite for high-end smartphones, particularly in the premium segment. In Q3 2024, Apple held an impressive 64% share of India’s $600+ smartphone market, up from 56% a year ago.

 

Challenges in China

While Apple gains momentum in India, it faces challenges in China, where local competitors like Huawei are reclaiming dominance. Apple’s market share in China’s premium segment has dropped significantly, from 24% in late 2023 to just 14% by Q3 2024.

 

The Road Ahead

Experts predict iPhone shipments in India could hit 14-15 million by 2025, solidifying its importance as a key growth market. However, Apple’s revenue growth may face headwinds due to reduced import duties, increased local manufacturing, and the potential launch of a more affordable iPhone SE model. Average selling prices (ASP) in India have already declined from $1,084 to $958 this year and could dip further.