Apple is likely to witness a decline in shipments for Macs, iPads, AirPods and smartwatches in India this year, even as iPhone demand continues to surge, according to industry analysts and retailers.

What Happened: Mac shipments are expected to fall between 15% and 18% in calendar 2023, while iPad shipments might contract by 6% to 8%, analysts at technology market researcher Counterpoint told Economic Times. Shipments of AirPods and Apple Watches are likely to more than halve this year. In contrast, iPhone shipments are set to increase by 50% by the end of the year.

Factors Behind The Drop: The decline in shipments for non-iPhone devices is attributed to their high prices, creating a hindrance to growth. The pricing disparity, inflationary pressures and a reluctance to move away from the popular Windows operating system are affecting the sales of iPads and Macs, the analysts said. The overall tablet market is expected to decline between 10% to 15% in 2023, while laptop and PC shipments will likely remain flat.

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Two categories expected to be insulated from the subdued market are True Wireless Stereo (TWS) and smartwatches. the TWS category is poised to grow between 45% to 50%, and smartwatch sales will likely grow between 65% and 70% this year. However, pricing continues to be a challenge for Apple products in these growing categories.

Heavy Competition: In the TWS and wearable segments, brands such as Boat and Boult are launching cheaper options to attract customers, offering products that look as good as the AirPods, the analysts found. The iPhone remains a significant driver of sales, with increased discounting, improved supplies, aggressive marketing and robust financing schemes fueling a surge in iPhone sales over the past few years.

While iPhone shipments nearly doubled in 2021 and grew by 16% in 2022, other ecosystem devices and services such as Mac and iPad are expected to become crucial in the future. The in-house M series of chips could become an important upgrade opportunity, as the user base grows, making the iPhone and Mac a crucial combination in the Apple ecosystem.

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