There are only a few hours left for the launch of the iPhone 18 series. Whether everyone is able to buy the iPhone or not, most people remain excited about it. Many people sometimes think that Apple makes less iPhones in India, yet how does the company earn so much. In fact, Apple’s earnings are not limited to phones made in India only. The business model of the company is spread all over the world and money comes in many ways.
First of all, it is important to understand that Apple makes and sells about 22-23 crore iPhones every year across the world. Production in India has increased rapidly. Now almost every fourth iPhone is assembled in India. Yet China still controls the lion’s share. But the main source of earning is global sales.
iPhones are sold at high prices in America, Europe, China and other countries. The special thing about Apple is that the profit margin of its products is very high. The cost of making an iPhone is low and the profit on selling it is high.
The second major part comes from services. Apple doesn’t just sell phones. Services like App Store, iCloud, Apple Music, Apple TV Plus and Apple Care continue to earn money. Once an iPhone is purchased, the user uses these services and the company continues to earn regular income. This model is very robust because the hardware is sold once, but the services last for years.
Apple’s earnings are also increasing in India. iPhone sales are continuously going up in the country. Apple has a strong hold in the premium segment. People are taking phones on installments, exchanging old phones and also buying other Apple products like AirPods, Watch and MacBook. Apple is earning more than one billion dollars annually from India. The company also gets tax and tariff benefits from local manufacturing. Phones made in India are exported to markets like America, due to which the cost remains under control.
Apple’s ecosystem also increases earnings
Once someone buys an iPhone, he does not easily switch to another brand. Software, apps and services are interconnected with each other. Due to this, the customer remains connected for a long time and the company benefits again and again.
Even if production in India was less, Apple would not have suffered a loss because its real strength lies in brand value, design and global demand. People buy Apple products because they consider it premium and reliable. Despite the high price, demand remains.
That means Apple’s earnings depend on many factors – worldwide hardware sales, high margins, regular income from services and the growing Indian market. Increasing production in India is an additional benefit for the company, but the real engine of earnings is the global business model. For this reason Apple is among the most valuable companies in the world.
