For the first time, Apple has reported annual sales exceeding $10 billion in India, according to a source cited by Bloomberg in the fiscal year that ended in March. This represents a notable increase from the $9 billion recorded in the previous year, with the growth rate reaching a double-digit percentage, and an impressive 67% growth compared to three years ago. iPhones dominate the revenue, making up a large portion of the total, while the company also sees rising demand for iPads and MacBooks. India is still a relatively small market – Apple’s quarterly sales in China were $18.8 billion (i.e. over a three-month period). This did miss the $19.6 billion estimate by analysts, but it shows the difference in scale between the two markets. Still, the $10 billion number in India is impressive as unfavorable exchange rates put a downward pressure on things – the Indian rupee fell 10% against the US dollar since the start of 2025.
In a recent policy shift, India eliminated 7.5% and 5% import duties on components essential for smartphone production, as reported by Reuters. This change is expected to reduce costs for Apple, which is continuing to expand its supply chain operations within the country. Apple has been advocating for this policy shift for several years. Local taxes aren’t helping things – not locally, anyway. As Bloomberg points out, the base iPhone 17 sells for ₹82,900, which works out to around $870 – that’s more than the $799 price tag that US buyers are looking at. However, Apple has been working with banks to offer credit card rebates. It also offers high student discounts and trade-in offers for older phones to stimulate sales. And judging by the results, it has been working.
Furthermore, India has extended tax exemptions for foreign companies providing machinery to local contract manufacturers until 2041, as per Reuters. This move is particularly advantageous for Apple, which is significantly increasing its iPhone manufacturing in the region. Previously, the tax exemption was scheduled to end in 2031, highlighting the importance of this extension to Apple’s ongoing operations. The leadership at Cupertino has spent years on trying to spread out Apple’s manufacturing capacity, which was at one point 100% in China. It’s still centered on China, but this March the news came out that a quarter of all new iPhones were made in India. This was an estimated 55 million units produced in a year, up from 36 million for the year prior. And here’s how Apple’s focus on India may be rewarded – the country is considering extending the tax exemptions on manufacturing equipment and component imports to 2041 (originally, they were set to expire in 2031). The exemption on components applies to parts used to manufacture devices for export outside of India – this aids Apple’s attempts to turn the country into a manufacturing hub for the global market (Apple wants to build all US iPhones in India, for example).