SUMMARY
Continue to perform incredibly well in emerging markets, with very strong double-digit growth in India, Southeast Asia and Latin America: Tim Cook
India set a new revenue record during the July-September quarter: Apple CFO Luca Maestri
Apple began manufacturing iPhone 14 variants in India within weeks of its global launch in September, and plans to make iPhones worth INR 47,000 Cr in FY23
Despite the dominance of Android phones in the Indian smartphone market, iPhone maker Apple witnessed strong double-digit revenue growth in India in the September quarter.
“Across nearly every geographic segment, we reached a new revenue record for the quarter. And we continue to perform incredibly well in emerging markets with very strong double-digit growth in India, Southeast Asia and Latin America,” Apple CEO Tim Cook said during the company’s earnings call.
Despite a strong dollar and difficult foreign exchange environment, the company saw strong performance in many international markets, particularly some large emerging markets, Cook said.
Luca Maestri, chief financial officer of Apple, said that India set a new revenue record, while other emerging markets such as Thailand, Vietnam, Indonesia, and Mexico more than doubled their revenues year-on-year (YoY). The growth rates were higher in local currency, Maestri added. However, the company did not divulge any further information.
Maestri said it is important for Apple to look at how these markets perform in local currency as it offers a good sense for the customer response to Apple products, the engagement with its ecosystem, as well as the strength of the brand.
Apple’s revenue rose 8% YoY to $90.15 Bn during September quarter, while profit remained almost flat at $20.7 Bn compared to $20.5 Bn a year ago. However, sales of iPhones rose over 9% on an annual basis, falling below analysts’ expectations.
It must be noted that the tech giant began manufacturing the latest iPhone 14 variants in India within weeks of its global launch in September. It plans to manufacture iPhones worth INR 47,000 Cr in FY23.
Interestingly, brokerage J.P. Morgan recently said that Apple may make one out of four iPhones in India by 2025 as it is considering shifting more iPhone production to India amid increasing geopolitical tensions and strict COVID-19 lockdowns in China.
Apple sold more than 1.2 Mn iPhones in the country in the second quarter of 2022, representing a 94% YoY growth, a report by CyberMedia Research (CMR) said. The iPhone 12 and 13 series accounted for most of the iPhones shipped into the Indian market during the quarter.
Spending on phones went up 20% YoY in the first four days of the 2022 festive season, as per a RedSeer report. Smartphone sales were driven by Apple iPhone 12, 13, and OnePlus phones.
With the upsurge in demand for iPhone 14 Pro and Pro Max, Delhi-NCR stores have been facing a shortage in stock. On Thursday, Minister of State (MoS) for Electronics and IT Rajeev Chandrasekhar said he spoke to the tech giant on the issue.
“I have spoken with Apple and they have said while iPhone14 demand is being met also with India production, the iPhone14 Pro demand has surged and is facing supply constraints which they are addressing,” the minister tweeted.
