Apple on Friday said it achieved record quarterly revenue in India during the October-December quarter, posting double-digit growth. This comes even as the iPhone maker reported a drop in its overall quarterly revenue for the first time in three-and-a-half years.
Apple, which opened its online store in the country in 2020, is shortly going to have its retail stores here as well. The company witnessed growth across all its product segments in the country.
According to analysts, a prime reason for the growth of premium smartphones in general and iPhones in particular in India can be attributed to various financing schemes like no-cost EMIs, and buy now, pay later (BNPL) options.
“We actually did fairly well through Covid in India and I am even more bullish now hopefully on the other side of it, and that is the reason why we are investing there,” Apple CEO Tim Cook said at the post-earnings call. “India is a hugely exciting market for us and is a major focus. We brought the online store there in 2020. We will soon bring Apple retail there. So, we are putting a lot of emphasis on the market,” Cook added.
According to Counterpoint Research, in India, Apple grew 16% year-on-year in calendar year 2022 and continued to lead the overall premium segment and the ultra-premium segment of smartphones above Rs 45,000 with its iPhone 13. India’s smartphone market shift from being volume-driven to value-driven is also driving the growth for premium smartphones.
In India, Apple sold 2 million iPhones in the October-December quarter, registering an 18% quarter-on-quarter growth, according to a report by CyberMedia Research.
“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 said.
According to industry sources, Apple is looking for large areas spread over 25,000 sq ft in Delhi and Mumbai to open its physical retail stores this year. The company may take a whole floor at a prime mall or a large space in a premier high street location. Apple’s retail stores also need logistics support like call centres.
Lately, owing to supply-side disruptions in China, Apple is looking to diversify its manufacturing facilities to countries like India and Vietnam. In the current financial year, till December, Apple contributed 50% to India’s total smartphone exports worth `60,000 crore ($7.5 billion).
In FY22, Apple India’s net profit rose 3% y-o-y to Rs 1,263 crore, whereas its revenue from operations rose 45.8% to Rs 33,313 crore during the year, according to filings with the Registrar of Companies under the corporate affairs ministry.
Globally, Apple’s revenue in October-December fell 5.5% y-o-y to $117.2 billion and its net profit was down 13.4% y-o-y to $30 billion.