Apple's revenue in India exceeded ten billion US dollars for the first time. What's remarkable is not so much the figure itself, but the circumstances under which it was achieved: the iPhone costs more in India than in the US – even though one in four iPhones worldwide is now manufactured there.
For years, India was a market that barely registered on Apple's balance sheet. That has changed: For months, the company has been profiting from the premium boom in the Indian market and is expanding its store network in parallel with its manufacturing operations.
A Bloomberg report, citing a person familiar with the figures, now reports on the next milestone. In the twelve-month period ending in March, revenue exceeded ten billion dollars for the first time, up from around nine billion in the previous year – a double-digit percentage increase.
Key Facts at a Glance
- Apple's sales in India exceeded ten billion dollars for the first time in a twelve-month period.
- The iPhone accounts for the vast majority, with iPad and Mac also gaining ground.
- The entry-level iPhone 17 costs more in India than in the USA – the reason being taxes and duties.
- Approximately a quarter of all iPhones are manufactured in India, the majority of which are destined for the US market.
- The period follows the Indian fiscal year and does not coincide with Apple's own fiscal year.
Why this period is not Apple's fiscal year
One detail is easily overlooked in the reporting: The twelve months mentioned end in March. Apple's own fiscal year, however, runs until the end of September – the company has just completed the third quarter of the current year with a significantly improved margin.
The ten billion mark therefore refers to the Indian fiscal year from April to March, not to a section of Apple's quarterly reports. Comparing this figure with the official segment figures means comparing different time periods.
Apple's own quarterly reports don't reveal its Indian revenue. The exact figure only became visible recently because Apple was required to disclose sales numbers in an antitrust case.
More expensive than in the USA, despite being manufactured in the country
The obvious expectation would be that an iPhone made in India would be cheaper in India. The opposite is true. Apple charges 82,900 rupees there for the entry-level iPhone 17, which is roughly equivalent to 870 US dollars. In the United States, the same model is listed at 799 dollars.
| Market | List price iPhone 17 (entry-level model) | Price includes taxes |
|---|---|---|
| USA | 799 US dollars | Sales tax is added at the checkout. |
| India | 82,900 rupees (approximately 870 US dollars) | Import and consumption duties are included |
| Germany | 949 euros | 19 percent VAT included |
High taxes and duties are responsible, not manufacturing costs. Apple partially offsets this through partnerships with banks that offer discounts for credit card purchases.
The situation on the supply side has recently eased: India has eliminated tariffs on iPhone components and also promised Apple tax breaks for production until 2041. So far, this has not been reflected in the end-customer price.
The same mechanism is at work in Germany
For German readers, the comparison is more familiar than it initially seems. The iPhone 17 with 256 GB is listed at €949 by Apple in Germany, while in the US it costs $799.
The two figures cannot be directly compared, for the same reason that applies to India: German list prices are gross prices including 19 percent VAT, while US list prices do not include the sales tax, which varies by state. Exchange rates and country-specific taxes also need to be factored in.
The price premium compared to the US price is therefore not a unique phenomenon in Germany or India, but rather the norm outside the United States. Which model offers the best value in this price range comes down to the iPhone 17, iPhone Air, and iPhone 17e.
Built in India, sold in the USA
Manufacturing in a country has little to do with sales in that country. Since Apple started producing one in four iPhones in India, the majority of these devices go to the American market.
The reason lies in customs policy: Apple has restructured its logistics so that iPhones for the US no longer need to come from China. India is therefore primarily an export location and only secondarily a sales market.
What the number says about Apple's next growth market
Ten billion dollars sounds like a lot, but compared to Apple's overall business, it's a single-digit percentage. What's truly significant is the growth rate: roughly one billion dollars in twelve months, in a country where an iPhone costs many times the average annual income.
That's precisely the gamble. Apple isn't selling to the average consumer in India, but to a growing upper class – and is building the infrastructure with its retail chain, payment services, and financing options for the moment when this class becomes significantly larger.
For the European market, this means more competition for attention in the medium term. Product decisions, availability, and price points will increasingly be based on what works in India – a market that played virtually no role for Apple for a long time. (Image: Apple)
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