India set all-time revenue record in September quarter: Apple

Apple registered its highest ever quarterly revenue in India, Apple chief executive Tim Cook said in the company’s September quarter earnings call with investors earlier today. Talking off the back of record quarterly revenue of $90.1 billion that beat analyst estimates, Cook said that India registered “very strong double-digit growth” in overall revenues, making this the latest quarter where Apple has registered strong growth in the country.

Apple has consistently reported strong performance in the September quarter, over the year. In its Q4 FY20 earnings report (Apple records its financial year from October to September), Apple set its then quarterly revenue record off the back of strong iPhone demand and the opening of the company’s official online store in the country.

In FY21’s September quarter, Apple said that it doubled its India revenue for the quarter, which helped Apple earn nearly one-third of its overall revenue from emerging markets (which includes India). In January this year, a Counterpoint India market report pegged Apple’s market share for 2021 to be at an all-time high of 3.8%, capturing 45% of India’s premium smartphone market for devices priced above ₹30,000.

In this year’s June quarter too, Apple said in its earnings call with investors that the company created a new revenue record for India, where its overall revenue nearly doubled.

The growth pace comes off the back of an increasing number of discount deals, faster launch cycles in line with global markets, and easier financing options for more expensive smartphones such as the Apple iPhone. On September 28, Sanjay Kothari, associate partner at market research firm Redseer, told Mint that heavy instant discounts, coupled with bank-linked offers, made the iPhone 13 one of the biggest contributors for the first week of 2022 festive season sales in India — which began on September 23.

Apple is also expected to look at India with more keenness as a manufacturing destination. On September 26, shortly after unveiling its new generation iPhone 14 series, Apple announced that its contract manufacturers have started making its latest devices in India — making this the first time that Apple is using the India facilities of its affiliates to make a latest generation device.

On September 21, an analyst call by investment banker JP Morgan said that Apple is likely to move 5% of its global manufacturing volume for its iPhones to India by the end of this year. By the end of 2025, one of every four iPhones could be made in India.

For Q4 FY22, Cook said that Apple beat inflation and foreign currency headwinds to post record revenue for the quarter.

“We set an all-time revenue record for Mac and September quarter records for iPhone and wearables, home, and accessories. Services notched a September quarter record as well with revenue of $19.2 billion and more than 900 million paid subscriptions. We reached another record on our installed base of active devices, thanks to a quarterly record of upgraders and double-digit growth in switchers on iPhone. 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,” the top executive said.

He also added that concerns linked to the global chip supply shortage has eased up in the September quarter.