Apple Sets India Revenue Record

Apple Sets Another Quarterly Revenue Record in India: Tim Cook

New Delhi: Apple has achieved another significant milestone by setting a quarterly revenue record in India for the April-June period, driven by robust local manufacturing and the government’s support for domestic production. This growth comes amid strong export figures, reflecting Apple’s expanding footprint in the Indian market.

Record-Breaking Quarter for Apple

During Apple’s Q3 earnings call, CEO Tim Cook announced that the company set quarterly revenue records in more than two dozen countries and regions, including India, Canada, Mexico, France, Germany, the UK, Indonesia, the Philippines, and Thailand. Cook highlighted that Apple’s services sector also reached an all-time revenue record, growing 14 percent year-over-year.

In the April-June quarter, Apple achieved record export numbers from India, amounting to approximately $3.8 billion. This impressive performance is largely attributed to the government’s production-linked incentive (PLI) scheme, which has significantly boosted local manufacturing efforts.

Financial Highlights

Apple reported a new June quarter revenue record of $85.8 billion globally, a 5 percent increase from the previous year. Luca Maestri, Apple’s Senior Vice President and Chief Financial Officer, highlighted the strong performance of the Mac product line, which generated $7 billion in revenue, up 2 percent year-over-year. This growth was driven by the popularity of the MacBook Air powered by the M3 chip.

Maestri emphasized the particularly strong performance in emerging markets, with record June quarter sales for Mac in Latin America, India, and South Asia. This indicates Apple’s growing influence and market penetration in these regions.

Growing Market Potential in India

Prabhu Ram, Vice President of the Industry Research Group at CyberMedia Research (CMR), noted that the iPhone 15 series continues to perform well in India. He expressed optimism about Apple’s growth potential in the country, especially with the upcoming launch of new iPhone models and the festive season sales expected to drive further growth.

In the last fiscal year (FY24), Apple saw its sales in India reach new heights, driven by increased manufacturing capabilities and a trend towards premiumization among Indian consumers. The company achieved approximately $8 billion in sales, marking a nearly 33 percent year-over-year increase.

Future Projections and Market Trends

According to industry estimates, iPhone shipments in India are projected to increase by over 20 percent this year. This growth is supported by strong domestic manufacturing and an efficient distribution network. India’s electronics sector has been experiencing rapid growth, reaching $155 billion in FY23.

Apple’s success in India is not only a testament to its strategic manufacturing initiatives but also reflects the broader trends in the Indian electronics market. The government’s PLI scheme has played a crucial role in encouraging local production, making India an increasingly important hub for Apple’s manufacturing operations.

The company posted quarterly revenue of $85.8 billion, up 5 percent year over year. India was among the two dozen countries where Apple hit a revenue record.

Conclusion

Apple’s record-breaking performance in India underscores the company’s successful strategy of leveraging local manufacturing and government incentives to drive growth. With a strong product lineup and continued expansion in emerging markets, Apple is well-positioned to capitalize on the growing demand for premium electronics in India.

The company’s ability to achieve significant revenue growth amidst global economic challenges highlights its resilience and strategic foresight. As Apple continues to invest in its manufacturing capabilities and expand its market presence, it is likely to see sustained growth in the Indian market in the coming years.

Apple’s journey in India serves as a compelling case study of how global companies can effectively navigate and thrive in one of the world’s most dynamic and rapidly growing markets.

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