Robust iPhone sales helped Apple achieve record quarterly revenue in India with double-digit growth during the January-March period. This was even as the tech giant’s overall revenue for the period fell 2.5% on a year-on-year basis due to foreign exchange headwinds, and weak sales of MacBooks, iPads, wearable and home accessories.
“Looking at the business in India, we did set a quarterly record, grew very strong, double digits year-over-year. So it was quite a good quarter for us. Taking a step back, India is an incredibly exciting market. It’s a major focus for us,” Cook said at the post- earnings call. “I really feel that India is at a tipping point. It’s great to be there. The dynamism in the market, the vibrancy is unbelievable,” he added.
While the company did not give any details of its India performance in terms of value and volumes, according to Counterpoint Research, Apple continued to lead the premium and ultra-premium segments in India during the January-March quarter, with strong growth in offline channels. The company’s shipments grew 50% y-o-y and it achieved a 6% share during the period.
One of the reasons for the growth of premium smartphones in India can be attributed to financing schemes like no-cost EMIs, and buy now, pay later options. “There’s been a lot done from financing options and trade-ins to make products more affordable and give people more options to buy. And so there’s a lot going on there,” Cook had said in February.
During his recent meetings with Prime Minister Narendra Modi, communications minister Ashwini Vaishnaw, and minister of state for IT Rajeev Chandrasekhar, Cook reaffirmed the company’s commitment to deepening and broadening its manufacturing and technology base in India.
With two retail stores now in Mumbai and Delhi, the company is also looking to expand its market share and appeal to premium consumers.
“We just opened our first two Apple stores in India, in Mumbai and Delhi. I was there to see it for myself, and I couldn’t have been more delighted by the excitement and enthusiasm of the customers, developers, creators and team members I got to spend time with,” Cook said.
In FY23 — India’s fiscal year as globally Apple’s new fiscal year begins October — Apple’s sales from India rose nearly 45% to $6 billion, which was a record high. Of the total `90,000 crore worth smartphone exports from India in FY23, half was contributed by Apple, according to industry estimates.
Over the last 24 months, Apple generated over 100,000 new direct jobs in manufacturing, of which 70% employ women, according to the government.
In India, Apple currently has a workforce of 2,500.
Apple’s global revenue in January-March fell 2.5% y-o-y to $94.8 billion and net profit fell 3.4% y-o-y to $24.2 billion. iPhone sales contributed $51.3 billion to the overall revenue.