Apple reports record growth in India, shifts supply chain.
Apple claimed another record increase in India during the March quarter with double-digit growth, despite a slowdown in smartphone sales. According to Tim Cook, CEO of Apple, India is a tremendously interesting market that is about to tip due to the country’s expanding middle class.
Looking at the Indian business, we did establish a record for the quarter and experienced robust, double-digit growth over the previous year. Looking back, India is a very intriguing market, therefore it was a wonderful quarter for us. We put a lot of effort into it. The market’s excitement and liveliness are incredible, and I was just there,” Cook said on the quarterly results call.
Moving the base
Apple’s favorable remarks on India come at a time when the tech giant has commenced shifting its supply chain to India. Last year, Apple announced that it is all set to commence manufacturing iPhone 14 in India, just days after its unveiling. Cook was in India last month to launch Apple’s first retail store in Mumbai and Delhi.
“Overall, the excitement I’m seeing for the brand there (in India) has me incredibly happy and excited. I truly believe that India is at a tipping point and that it is wonderful to be there since so many people are moving into the middle class, he remarked.
The expansion of Apple in India coincides with a slowdown in the global smartphone industry. With 31 million handsets sold to the region, the smartphone market in India had a 16% year-over-year (y-o-y) loss. According to preliminary figures from IDC’s Worldwide Quarterly Mobile Phone Tracker, this was the lowest first-quarter shipment in four years.
The founder and chief analyst of techARC, Faisal Kawoosa, stated: “India’s macroeconomic conditions should increasingly be favoring a brand like Apple. Apple remains the aspirational brand and users are increasingly finding it within their budget. We are seeing a rise in ultra-premium smartphone sales, sales of SUVs, and sales of premium real estate which is creating a favourable scenario for Apple. Of course, the brand is also proactively responding to this and increasing its commitment in the country.”
The two most populous countries in the world will have a significant impact on Apple’s future growth potential, according to Dipanjan Chatterjee, VP, and Principal Analyst at Forrester. After Coid, China is starting to recover in terms of supply and demand. India possesses significant revenue potential and acts as a supply hedge for iPhone manufacture. The country is where the corporation has a modest sub-5 percent market share (but a large percentage of the premium market).
