Apple’s Next Big Move In India: 4 New Stores & A Bold Manufacturing Expansion

Apple is doubling down on India. Following the successful launch of its first two retail stores in the country in 2023 — located in Mumbai and New Delhi — the Cupertino-based giant is now planning to open four more, further signalling the country’s growing importance in its global strategy. Set to open in Bangalore, Pune, Delhi NCR, and possibly another location in Mumbai, these new stores underscore Apple’s efforts to deepen its footprint in one of the world’s most dynamic and rapidly expanding markets.

This retail expansion comes at a time when Apple is also beginning local manufacturing of its flagship iPhone 16 Pro and iPhone 16 Pro Max models. For the first time, the ultra-premium models will roll off production lines in India, marking a new chapter in Apple’s efforts to diversify its supply chain away from China.

“Apple is now manufacturing the entire iPhone 16 lineup, including the iPhone 16 Pro and iPhone 16 Pro Max, in India,” Apple said. 

Apple’s senior vice president of retail, Deirdre O’Brien, recently hinted at the broader retail expansion, stating, “Our stores are incredible places to experience the magic of Apple, and it’s been wonderful to deepen our connection with our customers in India. We’re thrilled to build our teams as we plan to open more stores in India.”

India’s appeal for Apple is twofold: it offers a rapidly growing base of affluent consumers and an increasingly skilled manufacturing workforce. In fact, India is poised to play a key role in Apple’s long-term strategy to diversify its supply chain, which has become essential due to the geopolitical challenges the company faces with China. The increasing competency of Indian suppliers, combined with a favourable business environment, is bolstering Apple’s confidence in the region.

Industry analysts point to the success of the Delhi and Mumbai stores. The two cities are  estimated to contribute a staggering 20 percent of Apple’s sales in India, as a major factor in the decision to expand. Navkendar Singh, associate vice president at IDC India, notes, “With Delhi and Mumbai contributing more than one-fifth of Apple’s business, more than one store was required in these big metros. This retail footprint expansion will further strengthen Apple’s positioning in the premium device market in India.”

Meanwhile, Apple is working with several manufacturing partners to ramp up production. Foxconn has been tapped to produce the iPhone 16, 16 Plus, and 16 Pro Max models, while Pegatron and Tata Electronics will handle the other versions. Pegatron also manufactures the iPhone 16 Pro. Although Tata Electronics recently suffered a setback due to a factory fire, it’s expected that production will pick up swiftly, avoiding any long-term disruptions.

Since 2017, Apple has been assembling iPhones in India, but this is the first time all of its latest models are being produced domestically. As a result, Apple is expected to ship 12 to 12.5 million iPhones to the Indian market in 2024, a 25 percent increase from the previous year. This growth could be even more significant if Apple continues to scale production and open new retail locations.

Apple’s Indian ambitions aren’t limited to just iPhones. The company is also considering manufacturing other products like AirPods, within the country. The central government has, however, encouraged Apple to even manufacture iPads and MacBooks in India. While Apple has already relocated a portion of iPad production to Vietnam, it remains to be seen whether India will also secure a share of the pie. MacBooks and iMacs, among Apple’s most technologically advanced devices, are predominantly manufactured in China.  Local governments, particularly in Karnataka and Tamil Nadu, are actively courting Apple’s suppliers, hoping to establish a broader manufacturing ecosystem that could support a wider range of Apple’s product portfolio.

Looking ahead, Apple has ambitious plans to increase the share of iPhones manufactured in India from 14 percent to 25 percent over the next 3-4 years. This year alone, the company has manufactured $14 billion worth of iPhones in India, thanks to the development of a local supplier network. As Apple continues to reduce its reliance on Chinese suppliers, India is set to emerge as a key player in its global supply chain.

Apple now employs over 3,000 individuals in India, excluding those working with its manufacturing partners. Additionally, Apple has forged a joint venture with CleanMax, which offers clean energy capacity and a locally sourced solution to power Apple’s offices, its two retail stores, and its corporate operations in India. This partnership aligns with Apple’s commitment to achieving 100 percent carbon neutrality for its supply chain and products by 2030.

In addition, Apple is expected to launch Apple Pay in India next year. Following the thawing of its partnership with HDFC Bank, sources familiar with the matter anticipate that talks were held with ICICI Bank. Globally, Apple is shifting its focus away from Goldman Sachs towards American Express for the Apple Card.

While Apple’s retail expansion and manufacturing ramp-up are impressive, they also represent the company’s growing confidence in India’s economic and technological potential. With its premium pricing and strong brand recognition, Apple is well-positioned to capture a larger slice of India’s fast-growing consumer market, while also establishing the country as a critical hub in its global operations.