Apple's latest 'Made in India' iPhone 16 has seen a significant surge in pre-orders, setting the stage to shatter previous export records, according to trade analysts. The new line-up of iPhones is set to be available from September 20, with the iPhone 16 Pro models witnessing strong traction from buyers due to their strategic and accessible pricing compared to the previous 15 series.
The new iPhones will be available at Apple retail and online stores in India, including Apple BKC in Mumbai and Apple Saket in New Delhi, as well as the company's authorized sellers. The surge in demand for the base iPhone 16 model is stronger than last year, according to Counterpoint Research Director Tarun Pathak. He attributes this to attractive financing options and predicts that the new 16 series will break previous records.
The Indian government's push for local manufacturing has also played a significant role in the iPhone 16's success. The models are being manufactured and assembled in India, with simultaneous availability in the global market. This aligns with the government's Production-Linked Incentive (PLI) scheme, which has driven Apple's iPhone exports from India to reach around $5 billion in the April-August period of this fiscal year (FY25). This marks a growth of over 50% compared to the same period in FY24.
Prabhu Ram, VP-Industry Research Group at CyberMedia Research (CMR), told IANS that Apple is benefiting from the strong tailwinds rising from the premiumisation wave in the Indian smartphone market. He also expects the older generation iPhone 14 and 13 series to gain traction in the upcoming festive season.
The iPhone 16 Pro series, with its strategic and accessible pricing, is expected to drive upgrades in the Indian market, making it more appealing to a wider range of consumers. Globally, iPhone 16 series first-weekend pre-order sales are estimated at about 37 million units, according to industry analyst Ming-Chi Kuo.
Apple's revenues in India are projected to grow 18% year-on-year in 2024, and the new iPhone 16 series is expected to further solidify the company's presence in the country, along with boosting its export figures. Currently, Apple holds a 6% share by volume and 16% by value in India. The double-digit growth is expected to continue, with revenues projected to cross the $10 billion mark in 2025 in the country.
The iPhone production in India has increased from less than 1% in 2017 to 10% in 2023, and plans are underway to scale it up to 25% of global shipments by 2025, according to global investment firm Jefferies.
The 'Made in India' iPhone 16 series is set to make a significant impact on the Indian smartphone market and Apple's global exports. The strategic pricing, coupled with the government's push for local manufacturing and the premiumisation wave in the Indian market, are key factors driving this success. As Apple continues to solidify its presence in India, the future looks promising for both the tech giant and the Indian smartphone market.
