India ‘incredibly exciting’ market for Apple: Tim Cook

After posting record revenue and boosting production in the country through contract manufacturers, Apple Inc on Friday singled out India as an “incredibly exciting” market and a “tipping point” for the company.

Apple Inc CEO Tim Cook, at a conference call after releasing the Q2 results, spoke in detail about the Indian market which posted a new record of about $6 billion in sales in the 2022-2023 financial year. The Cupertino-based electronics major has been focussing on India for the past few years not just for sales of Apple products, but also as a major hub for production.

Also Read: Apple opens store in Delhi to boost investments in India

Three contract manufacturers – Foxconn, Pegatron, and Wistron – roll out high-end Apple iPhones from their production units near Chennai and Bengaluru, while Chinese firm Luxshare, which specialises in Apple watch and Apple Airpods, is likely to begin production very soon from the old Motorola mobile manufacturing unit on the outskirts of Chennai.

Foxconn and Pegatron are looking to expand their massive facilities as Apple plans to move a significant portion of its China operations to countries like India, while home-grown Tata Electronics Private Limited (TEPL) is in advanced talks with Wistron for takeover of India operations.

“India is an incredibly exciting market. It's a major focus for us…Overall, I couldn't be more delighted and excited by the enthusiasm I'm seeing for the brand there (India). There are a lot of people coming into the middle class, and I really feel that India is at a tipping point, and it's great to be there,” Cook said during the call, according to a release from Apple.

Apart from India, sales of Apple iPhones increased in markets like Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey, Brazil, and the UAE.

Speaking about his visit to India to open two Apple stores in Mumbai and Delhi, Cook said the company did set a quarterly record, grew very strong, and in double digits year-over-year.

“I was just there, and the Dynamism in the market, the vibrancy is unbelievable. Over time, we've been expanding our operations there to serve more customers…We've got a number of channel partners in the country as well that we're partnering with, and we're very happy with how that's going overall. Overall, I couldn't be more delighted and excited by the enthusiasm I'm seeing for the brand there,” Cook added.

India is emerging as a major production hub for Apple iPhones with companies like Foxconn scouting for locations in various parts of the country.

According to various estimates, Apple’s production in India went up to 7 per cent in 2023 from a mere 1 per cent in 2020 after Foxconn ramped up its production massively following the Covid-19 lockdown.

Pegatron, which opened its facility in September 2022, too began adding to Apple’s kitty. Both firms now roll out high-end Apple iPhone 14 and other flagship models from their India facilities.

TEPL is supplying mobile bases for Apple iPhones from its massive electronics ecosystem in Hosur, even as it plans to assemble phones for Apple after taking over Wistron. Salcomp, which now controls the entire Nokia SEZ, is supplying chargers for Apple products.