 "Apple sets record India revenue driven by iPhone sales, plans 4 new stores")
Apple achieved record-breaking revenue in India for the fourth quarter ending September 2024, as chief executive officer Tim Cook announced on Friday, November 1. During Apple’s Q4 earnings call, Cook expressed excitement over the rising popularity of Apple products in India, particularly the iPhone, which set an all-time revenue record in the region.
“We continue to be excited by the enthusiasm we are seeing in India, where we set an all-time revenue record,” Cook stated.
The iPhone wasn’t the only high-performing product; Cook noted that iPad sales in India saw strong performance, achieving double-digit growth during the quarter.
Cook also confirmed Apple’s plans to expand its retail presence in India. “We can’t wait to bring four new stores to customers in India,” he said. Currently, Apple operates two stores in India—Apple BKC in Mumbai and Apple Saket in New Delhi. The upcoming stores are expected in Bengaluru, Pune, Mumbai, and Delhi-NCR, aligning with Apple’s recently announced expansion strategy.
Apple also reported iPhone revenue growth across nearly all geographic regions. “We set September quarter segment revenue records in the Americas, Europe, the rest of Asia Pacific, and in numerous countries, including the United States, Brazil, Mexico, France, the UK, Korea, Malaysia, Thailand, Saudi Arabia, and the UAE,” said Cook.
Apple’s Q4 results
Apple’s Q4 earnings, reported on Thursday, exceeded market expectations, with strong initial sales of the iPhone 16 series, known for its AI-driven features. The company posted $94.93 billion in sales, marking a 6 per cent year-on-year increase, slightly above Wall Street’s forecast of $94.58 billion. Earnings reached $1.64 per share, excluding a significant EU tax charge. However, softer-than-expected results in China and lower performance in other product categories led Apple’s shares to dip by around 1 per cent in after-hours trading.
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The iPhone 16, launched shortly before the quarter ended on September 28, led the report with a 5.5 per cent rise in sales to $46.22 billion, outpacing analyst expectations of $45.47 billion. Tim Cook emphasised that initial feedback for the iPhone 16 has been positive, surpassing the early performance of last year’s iPhone 15. “We’ve had great feedback from customers and developers already,” Cook noted. “We’re off to a good start.”
Apple’s segment-wise revenue breakdown
- Total revenue: $94.93 billion (up 6 per cent year-on-year)
- iPhone: $46.22 billion (up 5.5 per cent year-on-year)
- Mac: $7.74 billion (up 1.71 per cent year-on-year)
- iPad: $6.95 billion (up 7.87 per cent year-on-year)
- Wearables, Home, and Accessories: $9.04 billion (down 3 per cent year-on-year)
- Services: $24.97 billion (up 11.91 per cent year-on-year)
- Apple’s cash reserves now stand at $156.65 billion.
Resilient iPhone sales amid China’s market fluctuations
China remains a critical market for Apple, yet fourth-quarter sales in the region fell slightly short of expectations, reaching $15.03 billion—below Visible Alpha’s forecast of $15.78 billion. The new iPhone 16, however, mitigated the decline, with China sales decreasing by less than 1 per cent, supported by the iPhone’s success.
Apple’s strategic growth in India
Apple is actively strengthening its position in India, where it currently holds just under 7 per cent of the smartphone market by volume but ranks second in value share at 22 per cent, according to Counterpoint Research. A South Korean competitor holds a marginal lead with 23 per cent. Notably, Apple’s iPhone exports from India rose by 33 per cent between April and September 2024 compared to the previous year.
During this period, Apple exported $6 billion worth of iPhones, primarily through its Foxconn facility in Tamil Nadu. This year, Apple also manufactured its entire iPhone 16 lineup, including premium models, in India, marking a historic first for premium production outside China.
AI strategy emphasising Apple intelligence
Apple’s AI approach, introduced this year, focuses on embedding AI within iOS rather than through standalone applications, aiming to streamline daily tasks like professional email editing. The flagship iPhone 16, equipped with advanced chipsets, supports exclusive Apple Intelligence features, although some are also available on the iPhone 15 Pro models.
While several Intelligence features launched recently, a staggered rollout has led some analysts to question whether delays could impact iPhone upgrade rates. Early sales of the iPhone 16, however, suggest Apple’s strategy is gaining traction, reducing concerns about gaps in feature availability impacting demand.