 "Apple grows in double digit in India in Q2, Tim Cook very pleased")
Apple achieved record revenue in India during the quarter ending March 2024, despite an overall 4 per cent decline in revenue due to slumping iPhone sales compared to the same period last year, according to CEO Tim Cook.
“We did grow strong by double-digit, and so we were very, very pleased with that. It was a new March quarter revenue record for us. As you know, as I’ve said before, I see it as an incredibly exciting market and it’s a major focus for us,” said Cook on Apple's performance in India, during the company's earnings call on Friday.
He also said that the company has set revenue records in more than a dozen countries and regions, which include Canada, Latin America, Spain, West Asia, and Turkey.
Cook also emphasised the importance of producing iPhones in India to remain competitive and linked the company’s growth in the Indian market to its operational expansion efforts.
“From a pragmatic point of view, you need to produce there (India) to be competitive, and so, yes, the two things are linked from that point of view, but we have both operational things going on and we have to go to market and initiatives going on,” he said.
Cook also mentioned Apple’s efforts to expand its presence in India, including bolstering its distribution channels and developer community. He noted the rapid growth of developers in the country and emphasised Apple’s comprehensive approach spanning development, marketing, and operations.
“We have been very pleased that there is a rapidly-growing base of developers in India… Apple is working all of the entire ecosystem from developer to the market to operations, the whole thing,” he said.
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Cook said he could “not be more excited and enthusiastic about it.”
In 2023, Apple said that it supported over a million developer jobs in India and is looking for further expansion.
Meanwhile, the US giant’s Chief Financial Officer Luca Maestri highlighted Apple’s achievement of setting a six-month revenue record in India and other emerging markets.
“We were particularly pleased with our strong momentum in emerging markets, as we set first-half revenue records in several countries and regions including Latin America, West Asia, India, Indonesia, the Philippines, and Turkey,” Maestri said.
Apple has significantly increased iPhone assembly in India over the past few years and has expanded its retail presence with the opening of stores in Mumbai (Apple BKC) and New Delhi (Apple Saket).
The double digit growth, however, is yet to make difference to its market share in India.
According to IDC Apple’s share in the smartphone segment is about 7 per cent at the end of CY23.
“Apple had a record 1Q 24 for iPhones with a growth of 19-20 per cent Y-o-Y. More than half of these shipments came from iPhone 14 and 15 models.
Discounts, special deals on etailer platforms and financing options were the key drivers for iphones, beyond the festive season,” said Navkendar Singh, associate VP, devices research, India & ANZ, IDC.
He further said that Apple also had a good quarter in PCs however unlike competition, they haven’t been as aggressive in pushing stock in the channel.
“In tablets, iPads continue to lead in the premium price bands. However, their base iPad variants are facing stiff competition from the likes of Samsung, Xiaomi, and OnePlus tablet models,” he noted.
According to market research firm Counterpoint Research, Apple led the India market with the highest revenue in 2023 for the first time, while Samsung topped the chart in terms of volume sales.
Apple’s iPhone exports from India rose sharply to $12.1 billion in 2023-24 from $6.27 billion in 2022-23, representing a massive surge of nearly 100 per cent, according to trade intelligence platform The Trade Vision.
Apple revenue falls
Apple reported revenue of $90.8 billion for the quarter ended March, 31, 2024, down 4 per cent year on year. There was a 10 per cent drop in iPhone sales compared to the same period last year.
The company also announced a share buyback plan worth $110 billion.
The fall in iPhone sales was attributed to a decline in sales in the Greater China region, which includes Mainland China, Taiwan, Singapore, and Hong Kong, where sales dropped 8 per cent year-on-year due to strong competition from Huawei, according to analysts.
Apple reported net income of $23.64 billion, or $1.53 per share, down 2 per cent from $24.16 billion, or $1.52 per share, in the year-ago period, CNBC reported.