Despite a 1 per cent year-on-year (y-o-y) dip in Q3 revenue, India continues to shine as a top-performing market for iPhone manufacturer Apple. According to Tim Cook, Apple’s chief executive officer, the company’s Indian operations recorded double-digit y-o-y growth and set a quarterly record in the June quarter, fuelled by robust iPhone sales.
Cook announced during an earnings call with analysts that Apple achieved an all-time record in the June quarter, with revenues seeing double-digit growth for the period.
The company reported a quarterly revenue of $81.8 billion, a decrease of 1 percent y-o-y, and quarterly earnings per diluted share of $1.26, marking a 5 per cent increase y-o-y. In Q2, the firm posted quarterly revenue of $94.8 billion and quarterly earnings per diluted share of $1.52.
Cook further added that the company’s recently opened retail stores in Mumbai’s Bandra Kurla Complex and New Delhi’s Saket have “exceeded our expectations.”
He said, “We’re in the early stages but they’re currently surpassing our expectations in terms of their performance. We’re continuing to work on expanding the channel and increasing investment in our direct-to-consumer offers.”
The CEO also emphasised the significant potential of the Indian market, saying, “India is the second-largest smartphone market in the world and we ought to be performing really well there and we’re very pleased with our growth. We still have a very modest and low market share in this smartphone market, so I think it’s a massive opportunity for us. And we’re putting all of our energy into making that happen.”
The Q3 growth from India follows a similar double-digit growth in Q2. Cook had earlier commented after the Q2 results, “Looking at the business in India, we set a quarterly record, achieved strong double-digit y-o-y growth. It was quite a good quarter for us. Taking a step back, India is an incredibly exciting market. It’s a major focus for us.”
Other emerging markets like Indonesia, Mexico, the Philippines, Poland, Saudi Arabia, Turkey, and the United Arab Emirates also showed promising performance.
Luca Maestri, Apple’s Chief Financial Officer, said, “Our June quarter y-o-y business performance improved from the March quarter, and our installed base of active devices reached an all-time high in every geographic segment. During the quarter, we generated a very strong operating cash flow of $26 billion, returned over $24 billion to our shareholders, and continued to invest in our long-term growth plans.”
Cook disclosed that Apple also achieved an all-time revenue record in Services during the June quarter, driven by over 1 billion paid subscriptions.
He said, “Services had an exciting quarter as revenue reached $21.2 billion, up 8 per cent y-o-y, better than we expected.”
Although iPhone revenues fell by 2 per cent y-o-y globally, the company observed that its wearables, home, and accessories revenue grew by 2 per cent y-o-y, amounting to $8.3 billion.
Apple Inc accounted for 45% of smartphone exports from India in FY23 Smartphones contributed 25% to the increase in merchandise exports.
Exports by Chinese smartphone firms fell 26% YoY in FY23 despite a push from govt; they accounted for just 1.35% of exports.
Apple exported over $5 billion worth of iPhones from the country in FY23 and already accounts for 45 per cent of the overall smartphone exports, followed by Samsung.