SUMMARY
We saw June quarter revenue records in both developed and emerging markets with a near doubling of revenue in India: Tim Cook
Apple’s visibly growing market penetration in India comes on the back of its decision to start the production of its latest phone series in India
Helped by strong revenue growth in both the emerging and developed markets, Apple reported a quarterly record total revenue of $83 Bn, up 2% YoY
Apple said that its revenue almost doubled in India in the June quarter of the financial year 2022-23 (FY23) during its earnings call on Thursday (PT).
“We saw June quarter revenue records in both developed and emerging markets with very strong double-digit growth in Brazil, Indonesia, and Vietnam and a near doubling of revenue in India,” said Tim Cook, Apple CEO.
“We saw great enthusiasm for our products and services, resulting in an all-time record for our installed base of active devices,” he added.
However, Cook also noted that the iPhone tends to be the engine for creating the market for Apple products in these emerging markets.
In fact, as per a recent report by CyberMedia Research (CMR), Apple sold over 1.2 Mn iPhones in India in the Q2 of 2022, which was 94% year-on-year (YoY) growth. iPhone 12 and iPhone 13 series accounted for the largest number of iPhone shipments.
Apple’s visibly growing market penetration in India also comes on the back of the company’s decision to start the production of its latest phone series in India.
There were reports in April about Apple starting its iPhone 13 production at its manufacturing partner Foxconn’s Chennai plant. With ‘Make in India’ devices Apple is trying to further deepen its presence in the country.
Moreover, the Indian government, in its push for the ‘Make in India’ initiative, had also asked Apple at the beginning of the year to develop India as a global base to export fully-built products. It has asked the global tech giant to generate an annual production output of products worth $5 Bn in the next five to six years.
It is pertinent to note here that Apple reported higher phone sales despite the inflationary pressure that has dampened consumer spending. In fact, according to International Data Corporation’s (IDC) latest report, smartphone shipments in India had declined for the third consecutive quarter, dropping 5% in the first quarter of 2022.
“5G has been an accelerant,” Cook noted further during the earning call. “In some geographies, it’s obviously higher, but around the world, 5G penetration is still low. And so, I think there’s reason to be optimistic.”
In fact, India is currently under the mass adoption phase of 5G, which is expected to accelerate smartphone adoption in the country even further. As per Telecom Minister Ashwini Vaishnaw, 5G services will be deployed across 20-25 cities and towns of the country by the year-end.
A Quick Look At Apple’s Overall Performance
Helped by strong revenue growth in both the emerging and developed markets, Apple reported a quarterly record total revenue of $83 Bn, up 2% YoY. The company’s total phone sales in the fiscal Q3 also rose 3% to $40.7 Bn.
Apple’s profit stood at $1.20 per share in the June quarter.
iPhone and its services drove the June quarter revenue with the segments generating $40.6 Bn and $19.6 Bn in sales, respectively.
Sales of iPads and Macs stood at $7.2 Bn and $7.4 Bn, respectively versus $7.3 Bn and $8.2 Bn in the corresponding quarter last fiscal year.
Given the continued uncertainty across the world, Apple did not provide a revenue outlook for its September quarter but it believes that year-over-year revenue growth will accelerate during the September quarter compared to the June quarter.
