Apple India revenues hit an all-time high in Sep quarter

IPhonemaker’s CEO says India reported ‘a very strong doubledigit growth’

NEW DELHI: Apple Inc. reported record India revenue in the September quarter on higher sales of smartphones, personal computers and iPads.

Analysts said Apple is increasingly cornering a higher market share in the laptop category, particularly in the enterprise segment. The good news for Apple is that growth in India was driven by iPads, MacBooks and services, signalling that the company is increasing its reach in India.

While Apple started the year with its highest-ever installed user base in the country, thanks to the rise of iPhone users last year, it has now managed to expand the market for its other devices, said Tarun Pathak, research director at Counterpoint India.

“Given that the iPhone is the typical entry point for Apple’s users in India, this has started trickling down to other categories for the company as well— such as Macs, iPads and services,” Pathak said.

Overall, the world’s most valuable company beat analysts’ quarterly sales and profit estimates, even as its tech rivals, Meta, Alphabet and Microsoft, disappointed investors.

On Thursday, Apple reported record revenue of $90.1 billion for the September quarter. During a call with analysts and investors, chief executive Tim Cook said India has seen “very strong double-digit growth”, while Luca Maestri, chief financial officer, said India set “a new all-time revenue record” for the company.

To be sure, Apple has consistently reported strong performance in India over the past two years, with Cook stating that its India unit had reported record quarterly revenue in the June quarter as well. The company has the largest market share in the premium smartphone category in India.

According to researcher Counterpoint, Apple held 44% market share for premium smartphones (priced above ₹30,000) in India, which fell to 37% in the first half of the year amid weakening consumer demand.

Apple India Pvt. Ltd’s operating revenue rose 46% to ₹33,312.9 crore in the year ended 31 March. However, net profit rose 3% to ₹1,263 crore.

Navkendar Singh, associate vice-president for client devices at market researcher International Data Corp. (IDC) India, said Apple would continue to report high double-digit revenue growth as sales of devices other than the iPhone grow. “Apple’s overall volume and market base in India continues to remain fairly limited, and the iPhone is unlikely to grow sharply. But, other segments will continue to consolidate its overall performance in the country,” he added.

Analysts said that despite Apple’s growth, its overall market share in India is expected to remain in the 5% range for both PCs and smartphones. “Apple’s iPhone shipment in India reached around 4.8 million units in CY21, which was a rise of nearly 75% from CY20. Even as the company continues to register record revenues, it is important to note that the same comes off the back of a low volume base. But the company may not see a similar rise in India this year,” Singh said.

He said Apple is likely to see a rise of 20% in iPhone sales volume in India for CY22, with its iPhone shipment volume estimated to reach 6 million devices at most.

Pathak of Counterpoint India said the availability of affordable iPhones ranging from 2019’s iPhone 11, coupled with heavy discounts on 2021’s iPhone 13 in the recent festive season sales, will see Apple’s market share in the premium segment aggregate to around 50% for CY22.

REUTERS Analysts said that despite Apple’s growth, its overall market share in India is expected to remain in the 5% range for both PCs and smartphones.