TMTPOST -- Apple, the American multinational technology giant, has secured a spot in the top five smartphone brands in India for the first time since it began selling iPhones in the country in 2024.

Vivo, Xiaomi, and Samsung continued to lead the India mobile handset market, followed by Realme, while Apple made its debut in the top five smartphone brands, according to the latest CyberMedia Research report.

The company achieved its 11th consecutive quarterly revenue record in the October-December period, and analysts estimated the iPhone’s gross revenue reached $10 billion in the country last year.5

Apple CEO Tim Cook stressed India’s significance as both a consumption market and an export hub for Apple during the company's post-results earnings call. Cook noted that he was “particularly keen on India, which set a December-quarter record during the quarter.”

“We are going to open four new stores there (in India). Also, the iPhone was the top-selling model in India for the quarter. And it’s the second-largest smartphone market in the world and the third largest for PCs and tablets, and so there's a huge market. And we have very modest shares in these markets, and so I think there’s lots of upside there,” Cook said.

Following the United States and China, India is poised to become Apple’s third-largest market globally by 2026. Apple’s shipments in India rose to over 12 million units in 2024, a 34–35% year-on-year surge from 9 million units in 2023, according to IDC.

Apple began producing the iPhone 16 Pro and iPhone 16 Pro Max in India in 2024 through its contract manufacturers Foxconn and Pegatron.

India’s smartphone market recorded shipments of over 38 million units in the fourth quarter of 2024, with annual shipments projected at approximately 153–154 million units, according to IDC.

In 2024, India’s smartphone market grew by 5%, with shipments reaching 156 million units, according to Canalys. This growth was driven by a post-pandemic replacement wave and the accelerating adoption of 5G technology. Counterpoint Research highlighted that the Indian smartphone market achieved a historic milestone, with revenue based on wholesale prices increasing by 9% year-on-year. The premium segment, particularly devices priced above 30,000 Indian Rupees (about $360), saw double-digit growth, contributing significantly to the overall market value.

Shilpi Jain, Senior Research Analyst at Counterpoint, noted, “The Indian smartphone market is transitioning towards higher-priced devices, with the premium segment becoming a key growth driver. We expect this trend to continue, pushing the market to new heights in 2025.”

Among the major players, Apple has made significant strides in India, a market that has historically been dominated by Chinese and South Korean brands. Over the past few years, Apple has intensified its efforts to establish a stronger foothold in the country. This includes setting up local manufacturing facilities, expanding its retail presence, and launching aggressive marketing campaigns tailored to Indian consumers.

Apple’s strategy has paid off handsomely. In the fourth quarter of 2024, the company broke into the top five smartphone brands in India for the first time, shipping 4 million units and capturing a 10% market share. This achievement is particularly noteworthy given the dominance of brands like Vivo, Xiaomi, and Samsung in the Indian market. Canalys Senior Analyst Sanyam Chaurasia attributed Apple’s success to its focus on driving user upgrades and strengthening its ecosystem through initiatives like trade-in programs and interest-free installment plans.

“Apple’s ability to offer affordable financing options and its strong brand appeal have been instrumental in driving growth in India,” Chaurasia said. “The company’s efforts to localize production and reduce costs have also made its devices more accessible to a broader audience.”

Apple’s commitment to India goes beyond sales. The tech giant has been investing heavily in local manufacturing, partnering with suppliers like Foxconn to assemble iPhones in the country. In 2024, Apple produced 25 million iPhones in India, accounting for 12% of its global output. This figure is expected to rise to 23% by 2025, as the company aims to diversify its supply chain and reduce its reliance on China.

The global smartphone market is witnessing a clear shift towards premiumization, with consumers increasingly opting for high-end devices that offer advanced features and superior performance. This trend is particularly evident in emerging markets, where rising disposable incomes and aspirations for premium brands are driving demand for flagship models.

In India, the premium segment has been a key growth driver, with brands like Apple, Samsung, and OnePlus leading the charge. Counterpoint’s data shows that devices priced above $500 accounted for a significant portion of the market’s revenue growth in 2024. This shift towards premiumization is not only boosting revenues but also improving profitability for manufacturers.

However, the premium segment is not without its challenges. Canalys pointed out that the growing popularity of refurbished high-end devices and the extended replacement cycles among urban consumers are creating headwinds for brands. “While the premiumization trend is strong, brands need to focus on innovation and customer engagement to sustain growth in this competitive segment,” said Chaurasia.

While emerging markets offer immense growth potential, they also present unique challenges for smartphone manufacturers. Regulatory hurdles, infrastructure limitations, and intense competition are some of the key issues that brands must navigate to succeed in these regions.

In India, for instance, the government has implemented policies to promote local manufacturing, including higher import tariffs and incentives for domestic production. While these measures have encouraged brands to set up local facilities, they have also increased operational complexities. Apple’s experience in India highlights the importance of adapting to local regulations and building strong relationships with governments and partners.

Despite these challenges, the opportunities in emerging markets far outweigh the risks. With their large populations, growing economies, and increasing smartphone penetration, countries like India, Indonesia, and Nigeria are poised to drive the next wave of growth in the global smartphone industry.

What’s Next for the Smartphone Market?

As the smartphone market continues to evolve, brands must adapt to changing consumer preferences and market dynamics. The focus on premiumization, 5G adoption, and ecosystem development will remain critical for sustaining growth. At the same time, manufacturers need to address challenges such as supply chain disruptions, regulatory uncertainties, and environmental concerns.

For Apple, India represents a strategic market that could shape its future growth trajectory. The company’s success in the country underscores the importance of localization, innovation, and customer-centric strategies. As Cook has repeatedly emphasized, “India is a key market for Apple, and we are committed to investing in its growth and development.”