MacBooks, iPhones drive record growth for Apple in India

Apple registered a near doubling of revenue in India, says Tim Cook,CEO

Apple on Thursday (July 28) announced the company's third-quarter results ending June 2022. While rival technology giants facing a slump in growth, Apple has managed to beat market expectations.

The Cupertino-based company was able to witness a revenue record of $83.0 billion, up 2 percent year over year, and quarterly earnings per diluted share of $1.20.

“It's the product and the innovation within the product that's driving it. The other key variables such as the size of the installed base have been growing significantly. We also set a June quarter record for switchers with strong double-digit growth that is fuelling the additional install base. We continue to execute across some significant geographies with low penetration of iPhones between Indonesia, Vietnam, and India where we did quite well. iPhone tends to be the engine for those markets, particularly at the beginning of creating the market there for Apple product,” Tim Cook, CEO, Apple said in response to an Analyst's query.

While rivals struggled with supply crunch and foreign exchange constraints caused by the Covid-19 pandemic and the Russia-Ukraine war, Apple was able to better manage the delivery of components for assembling their products.

Apple iPhone revenue grew three per cent year over year to an April-June quarter record of $40.7 billion. The credit largely goes to the positive response to the latest iPhone 13 series.

Also, "Services set a June quarter revenue record of $19.6 billion, up 12% over a year ago, with all-time revenue records in the Americas and the rest of Asia Pacific and June quarter records in Europe and Greater China," Luca Maestri, Apple’s CFO said.

In India, Apple was able to register close double-digit revenue growth compared to the previous year. It was driven by not only iPhones but also the adoption of more MacBooks by local IT enterprises in the subcontinent.

"Companies are increasingly investing in Apple products as a strategy to attract and retain talent. Wipro, another large mobile enterprise customer is investing in MacBook Air with M1 as a competitive advantage when recruiting new graduates globally- thanks to its superior performance and lower total cost of ownership. With the new M2 chip powering MacBook Air and the 13-inch MacBook Pro, we expect more customers to make Mac available to their entire workforce," Maestri said.

Since 2020, Apple has been very focused on improving its presence in India. It has managed to set up several iPhone and accessories assembly units through supply partners-- Foxconn, Pegatron and Westron Corp in Karnataka and Tamil Nadu.

Despite the economic slowdown in India, Apple was able to ship close to one million in the first quarter of 2022, almost 50 per cent more than the previous year's same period.

Foxconn is said to have started iPhone 13 assembling in Tamil Nadu, while Westron is said to be assembling iPhone SE and iPhone 12 series in Karnataka.

Given that Apple has complied with making products locally, the company has received the government nod to set up fully-owned physical stores in India.

As per media reports, Apple, though supposed to open its first retail store in Mumbai this year, has pushed the date to early 2023 due to unforeseen constraints caused by the Covid-19 pandemic. There are speculations of more Apple Stores coming in at least one in Bengaluru and another in Delhi.

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