On the back of weakening iPhone sales, Apple India’s revenue and net profit slumped in FY19. While net profit declined over 70% y-o-y to Rs 262.3 crore, revenue from operations fell 20% to Rs 10,583.3 crore, regulatory filings made to registrar of companies showed.
This is the sharpest fall in net profit for the US-based tech giant in at least a decade. Apple India’s net profits had declined 64% y-o-y in FY13.
In FY19, Apple had launched three variants of iPhones — XR, XS and XS Max.
Experts believe that high prices for its iPhone range and stiff competition from the likes of OnePlus led to decline in sales during the year. Sales in India in 2018 was one of the worst with shipments declining for the first time.
“The previous portfolio did not work out well for Apple in India. Most of the phones were imported and were expensive. The company also reworked its distribution strategy which impacted sales,” Tarun Pathak, associate director, Counterpoint Research, pointed out.
According to the Hong Kong-based Counterpoint Technology Market Research, Apple India’s mobile phone shipments were estimated to be around 1.7 million units in 2018 calendar year.
Analysts expect iPhone sales in India to bounce back with attractive pricing for iPhone 11 series launched in September and cut in the prices of the popular XR model.
