Local manufacturing, component shortage may have helped Apple to become top earner in Indian smartphone market

An increasing number of offers on older generation iPhones, and component shortages leading to a rise in prices of more affordable devices, were among the key contributing factors behind Apple’s record quarter in India. Experts say that such factors may continue into the future as well, meaning that Apple leading smartphone makers in India in terms of revenues may not be a one-off thing.

“The cost benefits of local manufacturing of its iPhones have meant that Apple has been able to offer deals on its older generation iPhones over the past few months. Further, Samsung did not launch its Note series in the premium range this year, which could have also boosted Apple’s sales. All of these factors would have contributed to Apple’s record quarter in India,” Prachir Singh, senior research analyst at Counterpoint Research, told TechCircle.

A Bloomberg report from earlier today stated that Apple shipped a record 2.3 million smartphone units in India in the last quarter of 2021, earning it the highest revenue among other smartphone vendors in India. Apple reportedly earned $2.09 billion in this quarter, ahead of Samsung – which seemingly took home $2 billion.

The report notes that while Apple shipped fewer devices in comparison to other original equipment manufacturers (OEMs), its overall revenue was much higher since its average selling price (ASP) of its iPhones is much higher than what other OEMs sell their products at.

Earlier this week, Apple reported a record quarter globally, with its revenues reaching $123.9 billion for the quarter. While Apple did not disclose its country-wise performance, market research firm CMR stated that Apple saw a 48 percent increase in device shipments in India during the quarter – which seemingly contributed to it having earned the highest revenues among all OEMs selling phones in India.

Counterpoint’s Singh said that the global component crisis, which led to rising prices of the more affordable price ranges in the smartphone market, also went in Apple’s favour. Going forward, Apple’s upcoming iPhone SE – the ‘affordable’ device in its lineup – could further boost its India sales figures. However, changing industry trends in terms of supplies and price points may see other OEMs recording higher revenues.

Prior to this quarter, Apple ranked third in India in terms of its smartphone revenues in the country – behind Xiaomi and Samsung.