$Apple (AAPL.US)$ shares are trading higher in the premarket session on Monday.
The company achieved record-breaking annual sales in India, nearing $8 billion, reflecting the tech giant's rapidly expanding presence in the country.
The milestone underscores Apple's growing market in India, where it has increased local assembly of its devices and opened two flagship stores.
India's revenue surged by about 33% in the 12 months ending in March, up from $6 billion the previous year.
Notably, high-priced iPhones accounted for over half of these sales, according to a report from Bloomberg.
Apple's growth in India highlights its efforts to capture users in the world's most populous nation. As India's economy strengthens, consumer purchasing power is rising.
Apple is leveraging this trend to diversify its manufacturing and revenue streams, particularly as trade tensions with China pose risks.
The Indian smartphone market is dominated by affordable Chinese brands running $Alphabet-A (GOOGL.US)$ Android OS. iPhones represent only 3.5% of the nearly 690 million smartphones in use in India, based on data from Counterpoint Research.
Despite this, India remains one of Apple's fastest-growing markets, contributing about 2% to its fiscal-year sales of $383 billion.
Apple's CEO Tim Cook has prioritized India, highlighted by his visit last year to inaugurate two Apple Stores.
India's expanding middle class, viewing Apple products as status symbols, could help reduce the company's dependency on Chinese sales.
Apple has been increasing its production capabilities in India, manufacturing models like the iPhone 15, though high-end models like the Pro and Pro Max are not yet produced locally.
The company exports most of its India-assembled devices. Apple's partners in India doubled production to $14 billion worth of iPhones last fiscal year, meaning roughly 14% of its devices are now made in India.
Morgan Stanley has maintained an Overweight rating on Apple and raised the price target from $216 to $273.
Apple stock has gained more than 12% in the last 12 months. Investors can gain exposure to the stock via $Vanguard Information Technology ETF (VGT.US)$ and$iShares US Technology ETF (IYW.US)$.
Price Action: At the last check on Monday, AAPL shares were trading higher by 1.98% at $235.10 in the premarket.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.