In the second quarter of 2025, Apple’s iPhone 16 series emerged as a dominant force in India’s smartphone market, accounting for over half of the company’s sales in the region. This success underscores Apple’s strategic focus on India, both as a manufacturing hub and a burgeoning consumer market.
iPhone 16’s Market Performance
The iPhone 16 series, launched in September 2024, has resonated strongly with Indian consumers. According to a report by Canalys, Apple secured the sixth position in India’s smartphone market during Q2 2025, with the iPhone 16 models contributing significantly to this achievement. This performance is particularly noteworthy given the overall market’s challenges during this period.
Challenges for the iPhone 16e
In contrast, the iPhone 16e, introduced as a budget-friendly alternative, has not met expectations. Despite its competitive pricing, Indian consumers have shown a preference for older iPhone models over the 16e. This trend suggests that while affordability is crucial, brand perception and feature set play significant roles in purchasing decisions.
Apple’s Manufacturing Shift to India
Apple’s commitment to India extends beyond sales. The company has been intensifying its manufacturing operations in the country. Foxconn, Apple’s primary assembly partner, plans to double iPhone production in India by the end of 2025, aiming to produce 25-30 million units, up from approximately 12 million in 2024. Tata Electronics has also commenced operations at new facilities, including one in Hosur, Tamil Nadu, supporting increased output of older iPhone models. This strategic shift aims to mitigate supply chain risks and reduce dependence on Chinese manufacturing.
Impact of External Factors on Sales
The broader smartphone market in India faced a downturn in Q2 2025, attributed to seasonal slowdowns and extreme heatwaves affecting retail foot traffic. Despite these challenges, Apple is expected to register a double-digit growth of more than 20 percent, shipping upwards of 2.8 million iPhone units. This resilience highlights the strong demand for premium smartphones in the Indian market.
Future Outlook
Looking ahead, Apple’s focus on the Indian market is expected to intensify. The company’s efforts to localize production and tailor products to Indian consumers’ preferences are likely to bolster its market position. However, the mixed performance of the iPhone 16e indicates that Apple may need to reassess its strategy for budget-friendly models to better align with consumer expectations.
Conclusion
Apple’s iPhone 16 series has made a significant impact on India’s smartphone market in Q2 2025, demonstrating the company’s ability to navigate challenges and capitalize on opportunities. As Apple continues to invest in the Indian market, its strategies will need to evolve to address the diverse needs of Indian consumers and the dynamic market landscape.
