Apple India FY20 profit up 253% to Rs 926 cr; bounces back after FY19 profit fell sharpest in decade

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Updated: Nov 07, 2020 7:36 PM

While revenues increased 29 per cent from Rs 10,583.3 crore in FY19 to Rs 13,756 crore in FY20, expenses also shot up 22.8 per cent from Rs 10,152 crore to Rs 12,469 crore during the said period.

apple store online launched in india with full range of products and many benefitsApple India’s net profit for FY20 jumped from Rs 262.27 crore in FY19.

Apple India’s net profit for FY20 has jumped a whopping 253 per cent to Rs 926 crore from Rs 262.27 crore in FY19, as per the regulatory documents. Revenues, on the other hand, increased 29 per cent from Rs 10,583.3 crore in FY19 to Rs 13,756 crore in FY20 for the company even as its expenses also shot up 22.8 per cent from Rs 10,152 crore to Rs 12,469 crore during the said period, as per documents accessed by business intelligence platform Tofler. Apple India’s FY19 net profit, as reported by Financial Express last year, had declined over 70 per cent from Rs 896.3 crore in FY18 — the sharpest decline for the company in at least a decade. Before this, its net profit had declined 64 per cent y-o-y in FY13.

Apple CEO Tim Cook, post its Q2 results last year, had said that while India is very important in the long term but it is a very challenging market in the short term. However, “we are learning a lot. We have started manufacturing there (India) which is very important to be able to serve the market in a reasonable way,” Cook had said speaking to analysts and media.

The company had announced the launch of its online store earlier this calendar year and on September 23 had launched the same, offering its full range of products and support directly to customers in India for the first time. Its record sales in India and other markets had helped improve its year-on-year revenue in Q4FY20. “Geographically, we set September quarter records in the Americas, Europe and rest of Asia Pacific. We also set a September quarter record in India, thanks in part to a very strong reception to this quarter’s launch of our online store in the country,” Cook had said in an earnings call. This is despite a decline of 20.7 per cent in iPhone sales globally during the quarter. The company is reportedly set to launch its store in India next year, Cook had told shareholders at the annual shareholder meeting.

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Apple had started manufacturing its most affordable smartphone iPhone SE 2020 in India in July this year by its manufacturing partner Wistron that also makes the iPhone 7 in India. The company had also recently started local assembly of the iPhone 11 in Chennai. Apple has been existing in India for over 20 years supporting nearly 9 lakh jobs through its continuous investments. Apple’s share in the Indian mobile phone market grew from 2.65 per cent in July 2019 to 3.35 per cent in July 2020, as per Statista.

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