Apple Q3 revenue soars on back of double-digit India sales, growth forecast slows as chip shortage concerns reach iPhone

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July 28, 2021 3:14 PM

Speaking to analysts during a post-earnings call, Cook said the company’s third quarter performance in emerging markets was incredible and attributed the performance to offering something for everyone.

Apple earningsDuring the last quarter, Apple told investors that the company expected the chip shortage to hold back sales worth up to $4 billion. (Photo: Reuters)

Apple Inc’s June quarter revenue rose 36.4 per cent on year to $81.4 billion — a record for the quarter — on the back of strong growth in emerging markets. Apple CEO Tim Cook said the majority of markets they tracked showed double-digit growth, with particularly strong showing in India, Vietnam, and Latin America.

Speaking to analysts during a post-earnings call, Cook said the company’s third quarter performance in emerging markets was incredible and attributed the performance to offering something for everyone. He called the iPhone SE, the company’s most affordable iPhone, an entry point and an important cog in its line-up.

India is a price-sensitive market, a fact not lost on Apple bosses, and the company has aggressively focussed on pricing over the last couple of years. The iPhone SE starts below Rs 40,000, while the XR and 11 variants cost a little under Rs 50,000 with deals and offers.

Apple has previously pointed to the growth opportunities it sees in India and highlighted plans to open physical outlets, on top of its online store, in an attempt to cement its standing in one of the world’s biggest and most competitive smartphone markets. The company has expressed keenness to offer in-store and online experiences in India that would be equivalent to its global standards.

Cook, however, also tempered expectations as he said the global chip shortage, which had already hit sales of Macbooks and iPads, will soon affect production of the iPhone. He also sees revenue growth slowing down as a result, Reuters reported.

According to Apple executives, the company’s fourth-quarter revenue will continue to see double-digit growth but fall below the third quarter rate. They said the chip shortage did not affect the company as much as was expected in the just-concluded quarter, but things would only get worse from here.

During the last quarter, Apple told investors that the company expected the chip shortage to hold back sales worth up to $4 billion.

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