According to a report by US-based brokerage firm Morgan Stanley, Apple’s financial performance in India experienced a significant boost, with revenues increasing by nearly 42% to reach $8.7 billion in 2023. The surge in Apple’s revenue reflects the growing importance of the Indian market to Apple, with iPhone shipments also witnessing a notable rise of approximately 39% to 9.2 million units.

Analysts from Morgan Stanley emphasized the increasing significance of India for Apple, noting that the country accounted for 4% of iPhone shipments and revenue in 2023, up from 3% in 2022 and just 1% five years ago. This indicates a remarkable growth trajectory for Apple revenue in the Indian market.

Apple achieved a record-breaking revenue quarter in India during the December quarter of 2023, leading in revenue among smartphone brands for the entire calendar year and surpassing the 10-million-unit mark in shipments. This milestone was achieved despite the overall smartphone shipments in India remaining flat at 152 million units, showcasing Apple’s ability to outpace competitors in the market.

The report by Morgan Stanley suggests a potential shift in the global market landscape, projecting that India could surpass China as a larger iPhone market by 2027 if current growth trends continue and China’s iPhone shipments remain stagnant. This underscores the strategic importance of India in Apple’s global market strategy and its potential to drive future growth for the company.

The Indian government’s initiatives to promote local manufacturing have also played a significant role in Apple’s success in the country. In January, the government reduced the import duty on mobile phone parts from 15% to 10%, making high-end smartphone manufacturing more viable in India. This policy change aligns with Apple’s strategy to expand its production footprint in the country, further boosting its revenue and market presence in India.

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