Tim Cook Bets Big on India, Sees Next Apple Growth Engine

As Tim Cook prepares to transition into executive chairman on September 1, passing the CEO role to John Ternus, India has emerged as a cornerstone of the company’s future strategy. Speaking during the company’s Q2 2026 earnings call, Cook expressed strong optimism, calling India a “huge opportunity” and saying he is “over the moon excited” about its potential.

“I think it is a huge opportunity for us. We have been focused on this for a while. It is the second-largest smartphone market in the world and the third-largest PC market. Despite doing extremely well there for quite some time, we still have a modest share, which speaks to the opportunity we have,” Cook said.

Apple Sees India Boom

A major factor behind Apple’s bullish outlook is India’s expanding middle class. With rising incomes and increasing digital adoption, more consumers are entering Apple’s ecosystem for the first time. Cook underlined this shift, noting, “In India, a lot of people are moving into the middle class, and we have some great products for them, both currently and coming.”

He further added that across most product categories—from iPhone to Mac to iPad and Apple Watch—over half of customers in India are new to those products. “It speaks very well to growing the install base,” he said.

This trend is critical for Apple’s long-term strategy, as a growing installed base not only boosts device sales but also strengthens its services ecosystem.

Apple’s physical retail presence in India is also gaining traction. The company recently opened its sixth store in the country, underscoring its commitment to deepening local engagement. Cook noted that Apple’s growth in India is part of a broader push to connect with customers across emerging markets.

Beyond consumer sales, enterprise adoption is also rising. Indian SaaS firm Freshworks recently deployed over 5,000 MacBook Pro and MacBook Air devices to accelerate AI development, signaling growing confidence in Apple’s ecosystem among businesses.

India, Apple’s iPhone Export Base

Over the past decade, Cook has overseen a strategic shift that turned India into a crucial node in Apple’s global supply chain. What began as a cautious diversification effort has evolved into a full-scale manufacturing and export engine, positioning India as one of the fastest-growing iPhone production bases in the world.

iPhone exports from India surged sharply, reaching around $10 billion in just the first half of FY26 alone. In some months, exports saw triple-digit growth, driven by new capacity and rising global demand.

A significant portion—up to 80%—of iPhones manufactured in India is now destined for export markets, particularly the United States. This marks a structural shift, with India no longer just assembling devices for local consumption but acting as a global export hub.

Strong Financials

Apple’s India focus comes against the backdrop of robust global performance. The company reported $111.2 billion in revenue for the quarter, up 17% year-on-year, exceeding expectations. iPhone revenue surged 22%, while services grew 16%, both setting new records.

Mac revenue was $8.4 billion for March, up 6% from a year ago despite supply constraints driven by higher-than-expected levels of demand. While iPad Revenue was $6.9 billion, up 8% from a year ago. iPad continues to be a great choice for students, small business owners, artists, and so many others.

Emerging markets, including India, played a key role in this growth. Apple recorded double-digit expansion across multiple segments in the country, from iPhones to Macs and iPads, mirroring trends seen in other high-growth regions.

A New Era with Confidence

Cook described the timing of the leadership transition as ideal, citing strong business performance and a “remarkable” product roadmap. Incoming CEO John Ternus echoed this optimism, pointing to the vast opportunities ahead.

Earlier in April while addressing employees alongside outgoing chief Cook Ternus set an emphatic and optimistic tone for the future of iPhone maker. “We’re going to keep focusing on design, because design is core to what we do at Apple. Apple’s brought truly incredible design to more people than any company in history. There are some things that can never change and won’t change,” he added.

The incoming CEO promised to keep working on the company’s privacy, security and environmental efforts.“Who we are as a company won’t change,” said Ternus, 50. “Our mission won’t change.”

As Apple enters a new leadership chapter, its India bet appears clearer than ever—positioning the country not just as a market, but as a major driver of its next phase of growth.