Tim Cook, Apple’s Chief Executive Officer (CEO) greets the media with folded hands outside the Apple store at Jio World Drive mall, Mumbai, India, April 18, 2023.
Apple CEO Tim Cook is in India this week. He’s opened two new Apple stores, is scheduled to meet with Prime Minister Narendra Modi, and he’s seeing sights and visiting customers in the country.
The international trip is the strongest sign yet that India has become a huge strategic focus for Apple as supply chains move away from China and its smartphone market is increasingly saturated with iPhone owners.
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India could echo the role China has played in Apple’s business for the last 15 years: A massive market with an expanding middle class to power sales growth, and potentially a home base for the production of millions of Apple devices.
Analysts say that India’s large population and maturing economy is ideally situated for Apple to make inroads by increasing marketing efforts and offering retail in the country. At the same time, India’s government is eager to work closely with Apple to make it possible to manufacture in the country, CNBC reported.
There’s room for Apple to grow on the subcontinent: Apple has less than 5% of the smartphone market share in India, versus about 18% in China, said Angelo Zino, senior analyst at CFRA research. The bulk of smartphone sales in both countries use versions of the Android operating system created by Google.
“As you look at India today, it’s very similar to China 15 or 20 years ago,” Zino said. “It’s really that natural wealth effect over time that’s going to help Apple really penetrate and see significantly higher revenue potential in India.”
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The opportunity could be massive: Apple did $74 billion in sales in China, Hong Kong, and Taiwan in fiscal 2022. That’s about 18% of Apple’s total revenue during the period.
India is not there yet. It’s reported in a category with other markets called “rest of Asia Pacific,” which reported only $29 billion in sales during the same time period.
Corporate filings in India covered by local media suggest that Apple’s sales in the country were about $4 billion in fiscal 2022, and Bloomberg reported earlier this week that Apple reported nearly $6 billion in sales in the year ending in March.
Cook has also made the India-China comparison to investors.
“We are, in essence, taking what we learned in China years ago and how we scale to China and bringing that to bear,” Cook said on an earnings call earlier this year.
Nearly all Android
India is the largest market that the iPhone hasn’t fully cracked, meaning it is critical for sales growth.
Cook boasted in February that the company was successfully wooing “switchers” in the country. That’s Apple’s word for previous Android phone owners who have decided to buy their first iPhone. Cook said in February that Apple had its best sales quarter ever for iPhones in India in the quarter ending in December.
A woman poses for a photo near the screen displaying Apple’s tablets inside the store after the launch at Jio World Drive mall, Mumbai, India, April 18, 2023.
Indians who buy iPhones are much more likely to be “switchers” than customers elsewhere because Android dominates the Indian market, led by Samsung and several Chinese brands. Android had over 95% of market share in the country, according to Statcounter.
The main reason is price. Most phones sold in India are priced below even the least-expensive new Apple iPhone. Industry analyst IDC estimated in February that the average selling price of a smartphone in India is $224, which had increased 18% in 2022. Apple’s entry level phone — the iPhone SE — retails for $429 in the U.S.
One way for Apple to address this gap is by allowing customers to pay for their phones in installments, or giving them a discount for trading in an older device. Cook mentioned these strategies when he was asked about India in February.
“There’s been a lot done from financing options and trade-ins to make products more affordable and give people more options to buy,” Cook said.
The two physical Apple stores opening this week and the online Apple store which launched in the country in 2020 are also expected to boost sales.
‘Make in India’
The second part of the strategy is to build Apple products in the country, a massive project that requires not only Apple’s attention, but also efforts from its manufacturing partners and local and national governments.
Nearly all iPhones are currently assembled in China, which has caused some problems over the past five years, starting with trade tensions and possible tariffs during the Trump administration, and extending to more recent supply chain disruptions caused by Covid and China’s Covid policies, which led to sales shortfalls.
India could end up being a big winner as Apple looks for non-Chinese manufacturing options. In January, India’s commerce minister told CNBC that Apple was manufacturing its latest iPhone 14 in the country and had a goal to produce as many as 25% of all iPhones in the country.
Apple’s primary manufacturing partner, Foxconn, which oversees a large portion of the assembly of new iPhones in China, is expanding in India, too, reportedly building a $700 million plant for iPhone parts in Bangalore.
In another parallel to China, the Indian government is eager to embrace Apple and use it as a symbol to attract other high tech firms to the country for manufacturing and development. Over the past 20 years, Chinese governments at multiple levels have worked to make massive factories like Foxconn’s Zhengzhou factory — known as “iPhone City” — possible.
Modi wants to discuss Apple’s plans for manufacturing around the country and creating manufacturing jobs, CNBC’s Seema Mody reported. He also wants to know about the challenges Apple has faced in growing its user base in the country.
Not so fast
This isn’t the first time that investors have been excited about Apple’s potential in India, and some analysts warn that it may take a while before it becomes a huge market.
“I’ve told investors this: All the all the hype you’re hearing about India this week is great,” Zino said. “I mean, it is a massive opportunity in our view, over the next decade, but don’t expect things to change overnight.”
Apple has also faced challenges in its early experiments manufacturing in the country, most notably at a Wistron factory in Bengalaru assembling older model iPhones, which erupted in a labor riot in late 2020.
Tim Cook, Apple’s Chief Executive Officer (CEO) reacts as a man shows him Apple’s Macintosh outside the Apple store at Jio World Drive mall, Mumbai, India on April 18, 2023.
Apple has had its eyes on an India expansion since at least 2016, when Cook previously met Modi.
At that meeting, Cook told Modi about the potential for manufacturing and retailing Apple goods in the country. Now, six years later, Cook is back in India to open up the company’s first two owned-and-operated retail stores.
Apple was bullish on India back then, too: “India will be the most populous country in the world in 2022,” Cook told CNBC’s Jim Cramer at the time, saying it had “huge market potential.”
Apple’s long-term strategy in India is best summarized by a quote Cook gave to local media during his 2016 trip to the subcontinent.
“We are putting enormous energy in here, and we are not here for a quarter, or two quarters, or the next quarter, or the next year, or the next year, we are here for a thousand years,” Cook said.
Hidden among the majestic canyons of the Utah desert, about 7 miles from the nearest town, is a small research facility meant to prepare humans for life on Mars.
The Mars Society, a nonprofit organization that runs the Mars Desert Research Station, or MDRS, invited CNBC to shadow one of its analog crews on a recent mission.
“MDRS is the best analog astronaut environment,” said Urban Koi, who served as health and safety officer for Crew 315. “The terrain is extremely similar to the Mars terrain and the protocols, research, science and engineering that occurs here is very similar to what we would do if we were to travel to Mars.”
SpaceX CEO and Mars advocate Elon Musk has said his company can get humans to Mars as early as 2029.
The 5-person Crew 315 spent two weeks living at the research station following the same procedures that they would on Mars.
David Laude, who served as the crew’s commander, described a typical day.
“So we all gather around by 7 a.m. around a common table in the upper deck and we have breakfast,” he said. “Around 8:00 we have our first meeting of the day where we plan out the day. And then in the morning, we usually have an EVA of two or three people and usually another one in the afternoon.”
An EVA refers to extravehicular activity. In NASA speak, EVAs refer to spacewalks, when astronauts leave the pressurized space station and must wear spacesuits to survive in space.
“I think the most challenging thing about these analog missions is just getting into a rhythm. … Although here the risk is lower, on Mars performing those daily tasks are what keeps us alive,” said Michael Andrews, the engineer for Crew 315.
Formula One F1 – United States Grand Prix – Circuit of the Americas, Austin, Texas, U.S. – October 23, 2022 Tim Cook waves the chequered flag to the race winner Red Bull’s Max Verstappen
Mike Segar | Reuters
Apple had two major launches last month. They couldn’t have been more different.
First, Apple revealed some of the artificial intelligence advancements it had been working on in the past year when it released developer versions of its operating systems to muted applause at its annual developer’s conference, WWDC. Then, at the end of the month, Apple hit the red carpet as its first true blockbuster movie, “F1,” debuted to over $155 million — and glowing reviews — in its first weekend.
While “F1” was a victory lap for Apple, highlighting the strength of its long-term outlook, the growth of its services business and its ability to tap into culture, Wall Street’s reaction to the company’s AI announcements at WWDC suggest there’s some trouble underneath the hood.
“F1” showed Apple at its best — in particular, its ability to invest in new, long-term projects. When Apple TV+ launched in 2019, it had only a handful of original shows and one movie, a film festival darling called “Hala” that didn’t even share its box office revenue.
Despite Apple TV+being written off as a costly side-project, Apple stuck with its plan over the years, expanding its staff and operation in Culver City, California. That allowed the company to build up Hollywood connections, especially for TV shows, and build an entertainment track record. Now, an Apple Original can lead the box office on a summer weekend, the prime season for blockbuster films.
The success of “F1” also highlights Apple’s significant marketing machine and ability to get big-name talent to appear with its leadership. Apple pulled out all the stops to market the movie, including using its Wallet app to send a push notification with a discount for tickets to the film. To promote “F1,” Cook appeared with movie star Brad Pitt at an Apple store in New York and posted a video with actual F1 racer Lewis Hamilton, who was one of the film’s producers.
(L-R) Brad Pitt, Lewis Hamilton, Tim Cook, and Damson Idris attend the World Premiere of “F1: The Movie” in Times Square on June 16, 2025 in New York City.
Jamie Mccarthy | Getty Images Entertainment | Getty Images
Although Apple services chief Eddy Cue said in a recent interview that Apple needs the its film business to be profitable to “continue to do great things,” “F1” isn’t just about the bottom line for the company.
Apple’s Hollywood productions are perhaps the most prominent face of the company’s services business, a profit engine that has been an investor favorite since the iPhone maker started highlighting the division in 2016.
Films will only ever be a small fraction of the services unit, which also includes payments, iCloud subscriptions, magazine bundles, Apple Music, game bundles, warranties, fees related to digital payments and ad sales. Plus, even the biggest box office smashes would be small on Apple’s scale — the company does over $1 billion in sales on average every day.
But movies are the only services component that can get celebrities like Pitt or George Clooney to appear next to an Apple logo — and the success of “F1” means that Apple could do more big popcorn films in the future.
“Nothing breeds success or inspires future investment like a current success,” said Comscore senior media analyst Paul Dergarabedian.
But if “F1” is a sign that Apple’s services business is in full throttle, the company’s AI struggles are a “check engine” light that won’t turn off.
Replacing Siri’s engine
At WWDC last month, Wall Street was eager to hear about the company’s plans for Apple Intelligence, its suite of AI features that it first revealed in 2024. Apple Intelligence, which is a key tenet of the company’s hardware products, had a rollout marred by delays and underwhelming features.
Apple spent most of WWDC going over smaller machine learning features, but did not reveal what investors and consumers increasingly want: A sophisticated Siri that can converse fluidly and get stuff done, like making a restaurant reservation. In the age of OpenAI’s ChatGPT, Anthropic’s Claude and Google’s Gemini, the expectation of AI assistants among consumers is growing beyond “Siri, how’s the weather?”
The company had previewed a significantly improved Siri in the summer of 2024, but earlier this year, those features were delayed to sometime in 2026. At WWDC, Apple didn’t offer any updates about the improved Siri beyond that the company was “continuing its work to deliver” the features in the “coming year.” Some observers reduced their expectations for Apple’s AI after the conference.
“Current expectations for Apple Intelligence to kickstart a super upgrade cycle are too high, in our view,” wrote Jefferies analysts this week.
Siri should be an example of how Apple’s ability to improve products and projects over the long-term makes it tough to compete with.
It beat nearly every other voice assistant to market when it first debuted on iPhones in 2011. Fourteen years later, Siri remains essentially the same one-off, rigid, question-and-answer system that struggles with open-ended questions and dates, even after the invention in recent years of sophisticated voice bots based on generative AI technology that can hold a conversation.
Apple’s strongest rivals, including Android parent Google, have done way more to integrate sophisticated AI assistants into their devices than Apple has. And Google doesn’t have the same reflex against collecting data and cloud processing as privacy-obsessed Apple.
Some analysts have said they believe Apple has a few years before the company’s lack of competitive AI features will start to show up in device sales, given the company’s large installed base and high customer loyalty. But Apple can’t get lapped before it re-enters the race, and its former design guru Jony Ive is now working on new hardware with OpenAI, ramping up the pressure in Cupertino.
“The three-year problem, which is within an investment time frame, is that Android is racing ahead,” Needham senior internet analyst Laura Martin said on CNBC this week.
Apple’s services success with projects like “F1” is an example of what the company can do when it sets clear goals in public and then executes them over extended time-frames.
Its AI strategy could use a similar long-term plan, as customers and investors wonder when Apple will fully embrace the technology that has captivated Silicon Valley.
Wall Street’s anxiety over Apple’s AI struggles was evident this week after Bloomberg reported that Apple was considering replacing Siri’s engine with Anthropic or OpenAI’s technology, as opposed to its own foundation models.
The move, if it were to happen, would contradict one of Apple’s most important strategies in the Cook era: Apple wants to own its core technologies, like the touchscreen, processor, modem and maps software, not buy them from suppliers.
Using external technology would be an admission that Apple Foundation Models aren’t good enough yet for what the company wants to do with Siri.
“They’ve fallen farther and farther behind, and they need to supercharge their generative AI efforts” Martin said. “They can’t do that internally.”
Apple might even pay billions for the use of Anthropic’s AI software, according to the Bloombergreport. If Apple were to pay for AI, it would be a reversal from current services deals, like the search deal with Alphabet where the Cupertino company gets paid $20 billion per year to push iPhone traffic to Google Search.
The company didn’t confirm the report and declined comment, but Wall Street welcomed the report and Apple shares rose.
In the world of AI in Silicon Valley, signing bonuses for the kinds of engineers that can develop new models can range up to $100 million, according to OpenAI CEO Sam Altman.
“I can’t see Apple doing that,” Martin said.
Earlier this week, Meta CEO Mark Zuckerberg sent a memo bragging about hiring 11 AI experts from companies such as OpenAI, Anthropic, and Google’s DeepMind. That came after Zuckerberg hired Scale AI CEO Alexandr Wang to lead a new AI division as part of a $14.3 billion deal.
Meta’s not the only company to spend hundreds of millions on AI celebrities to get them in the building. Google spent big to hire away the founders of Character.AI, Microsoft got its AI leader by striking a deal with Inflection and Amazon hired the executive team of Adept to bulk up its AI roster.
Apple, on the other hand, hasn’t announced any big AI hires in recent years. While Cook rubs shoulders with Pitt, the actual race may be passing Apple by.
Tesla CEO Elon Musk speaks alongside U.S. President Donald Trump to reporters in the Oval Office of the White House on May 30, 2025 in Washington, DC.
Kevin Dietsch | Getty Images
Tesla CEO Elon Musk, who bombarded President Donald Trump‘s signature spending bill for weeks, on Friday made his first comments since the legislation passed.
Musk backed a post on X by Sen. Rand Paul, R-Ky., who said the bill’s budget “explodes the deficit” and continues a pattern of “short-term politicking over long-term sustainability.”
The House of Representatives narrowly passed the One Big Beautiful Bill Act on Thursday, sending it to Trump to sign into law.
Paul and Musk have been vocal opponents of Trump’s tax and spending bill, and repeatedly called out the potential for the spending package to increase the national debt.
The independent Congressional Budget Office has said the bill could add $3.4 trillion to the $36.2 trillion of U.S. debt over the next decade. The White House has labeled the agency as “partisan” and continuously refuted the CBO’s estimates.
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The bill includes trillions of dollars in tax cuts, increased spending for immigration enforcement and large cuts to funding for Medicaid and other programs.
It also cuts tax credits and support for solar and wind energy and electric vehicles, a particularly sore spot for Musk, who has several companies that benefit from the programs.
“I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!” Trump wrote in a social media post in early June as the pair traded insults and threats.
Shares of Tesla plummeted as the feud intensified, with the company losing $152 billion in market cap on June 5 and putting the company below $1 trillion in value. The stock has largely rebounded since, but is still below where it was trading before the ruckus with Trump.
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Tesla one-month stock chart.
— CNBC’s Kevin Breuninger and Erin Doherty contributed to this article.