Local manufacturing makes India sales resilient for Apple

Despite supply chain issues at Apple’s production facilities in China, India may continue to generate sales growth in the fourth quarter for the iPhone maker, according to forecasts by experts. Global technology market research firm Counterpoints said that sales of Apple products will increase by 15-16 percent year-on-year for the fourth quarter of the 2022 calendar year. This is because the smartphone manufacturer’s decision to manufacture most of its iPhone 14 portfolio in India has allowed it to avoid ongoing supply chain issues in China.

While unrest at Apple’s main manufacturing center in Zhengzhou, China, is likely to result in a global shortfall of 6 million iPhone Pros, Apple is likely to maintain its sales growth momentum for India. India has done well in sales for the iPhone maker over the past few quarters, as it has been one of the few global markets that has retained growth momentum.

iPhone Pro

While smartphone sales are also low in India, and the waiting time for the iPhone 14 Pro has skyrocketed, experts expect Apple’s overall selling portfolio to continue to grow. An expert explained that bringing production of Apple’s latest iPhone 14 into India in a short time after its launch, along with good prices and demand for older Apple iPhone models in India, stimulated Indians to increase their appetite for Apple products. So while iPhone 14 Pro shipments to India fell by 18 percent in October, overall sales in India won’t be affected much.

Because of their high price, iPhone Pros usually contribute very little to Apple’s overall sales portfolio. However, demand for the iPhone 14 Pro has been better than expected in India this year. But since iPhone Pros are only manufactured at Foxconn’s facilities in China, the global supply shortage of the iPhone 14 Pro has affected India as well. According to retailers, iPhone 14 Pro average wait times are 4 weeks and longer at Level 2 and Level 3 outlets.

Apple’s biggest concern this quarter will be its western markets as the overbought or holiday season begins with Thanksgiving in November and Christmas in December. The Indian peak buying season happened earlier in September and October where supply chain issues weren’t as bad and high inventories helped Apple meet demand.