Apple Inc. has achieved “strong double digits” growth in India, leading to a record revenue for the June quarter, according to Tim Cook, the company’s CEO. Apple’s revenue in the country comes amid sustained growth and expansion efforts.
Retail Stores and Investments
During the quarter, Apple opened its first two retail stores in India, which are reportedly exceeding expectations. The company continues to focus on expanding its channel and direct-to-consumer offerings.
Rising iPhone Shipments
The primary revenue driver for Apple, the iPhone, has seen steady growth in shipments over the past three years. Data from market researcher International Data Corp. (IDC) India indicates that iPhone shipments are projected to reach 9 million units in 2023, a 40% increase from the previous year.
Quarterly Earnings and Services Growth
Despite a global decline in consumer sentiment affecting Apple’s June quarter earnings, the company surpassed analysts’ estimates, reporting quarterly revenue of $81.8 million. The iPhone’s revenue declined by 2% year over year to $39.67 billion, while revenue from Mac and iPads fell 7% and 20%, respectively. However, Apple’s services vertical saw an 8% annual growth, generating $21.21 billion in revenue.
Future Expectations
Apple’s CFO, Luca Maestri, expects iPhone sales and the services vertical to improve in the future. Mac and iPad revenues are predicted to decline due to difficult comparisons with the previous year’s supply disruptions.
Strong Performance in India
Apple’s performance in India is not surprising given the market shift. The company’s shipments in the quarter grew over 61% YoY, and it captured the seventh rank among top smartphone brands in the country with a 5.5% market share.
Potential for Top Spot in Revenue Market Share
Apple’s rising shipments and higher per-device margins could potentially see the company capture the top spot in terms of India’s revenue market share for the first time. Projections suggest that a 40% shipment growth could lead to $8.5 billion in iPhone revenue from India in 2023, possibly rivaling or surpassing Samsung’s revenue in the country.
Strong Demand and Offline Retailers
Apple continues to see strong demand for its products in India, even as general buyer demand remains lackluster. The company’s higher per-device margins and rising ASP of smartphones in India contribute to its success in the market. Offline retailers, including small third-party stores, are also experiencing strong traction for Apple’s products.
As Apple’s presence and revenue continue to grow in India, the company remains well-positioned to capitalize on the country’s expanding smartphone market.
