People assume that most of Apple’s sales in India is coming from metro cities and other Tier-I cities. However, a recent report has discovered that about 60 per cent of the 90 lakhs iPhones that Apple sold in India, were sold in Tier-II and Tier-III cities
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 "Apple sold over 90 lakh iPhones in 2023 in India. 60 per cent of these were in Tier II, III cities (1)")
India has established itself as a pivotal destination for Apple, not just in terms of sales but also in manufacturing. What is fascinating is that a vast portion of this push in sales is coming from Tier-II and Tier-III cities.
The Economic Times reports that the majority of Apple’s sales in India, exceeding 60 per cent, now originate from smaller Tier-II and Tier-III cities, highlighting a significant shift in consumer preferences.
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Traditionally, Apple had focused its sales efforts on major metropolitan areas, relying on premium resellers. However, the changing landscape during the pandemic, characterized by increased online purchases and a heightened demand for premium smartphones, prompted Apple to reevaluate its strategy and extend its reach to smaller cities.
In response to evolving consumer dynamics, Apple initiated online partnerships with various e-commerce platforms, a departure from its previous emphasis on metropolitan markets. The launch of the company’s online store in 2020, amid the pandemic, facilitated direct customer service across India.
Collaborations with retail chains such as Croma and Reliance Digital further broadened the accessibility of Apple devices to previously underserved regions.
The surge in online purchases was bolstered by the availability of no-cost EMI options on platforms like Amazon and Flipkart, as well as partnerships with Apple’s banking associates.
This financial flexibility marked a departure from the constraints imposed by premium reseller offline chains, making Apple products more accessible to a broader consumer base.
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While Apple may not command a significant market share in India’s smartphone industry, CEO Tim Cook has identified India as a key focus for the company.
With over 90 lakh iPhones sold in India in 2023 and more than 60 per cent of sales coming from Tier-II and Tier-III cities, Apple is positioned for continued growth. The company has achieved a revenue milestone of Rs 50,000 crores in the current fiscal year, showcasing sustained growth and a doubling of revenue compared to 2020.
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(With inputs from agencies)
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