CEO says incredibly exciting market
New Delhi: Apple grew at a strong double-digit rate in India, hitting a new March quarter revenue record in an “incredibly exciting market”, even though the tech titan’s overall quarterly revenue declined 4 per cent.
Apple’s India showing earned praises from CEO Tim Cook who described the market here as a “major focus” and said Apple is working on the entire ecosystem from developer to the market to operations. The top honcho said he is “very pleased” with the growth numbers.
“We did grow strong double-digit (in India). And so we were very, very pleased about it. It was a new March quarter revenue record for us. As you know, as I’ve said before, I see it as an incredibly exciting market and it’s a major focus for us,” he said in India specific call-outs during the company’s Q2 earnings.
Cook further added, “In terms of the operational side or supply chain side, we are producing there; from a pragmatic point of view, you need to produce there to be competitive.”
The Cupertino-based iPhone maker has set revenue records in more than a dozen countries and regions. These include, among others, March quarter records in India, Latin America and the Middle East, as well as Canada, Spain, and Turkey.
On Apple’s India report card, Cook said the company has both operational things going on and go-to-market, alongside various initiatives.
“We just opened a couple of stores as last year, and we see enormous opportunity there,” he said.
Apple continues to expand its channels, and is also working on the developer ecosystem.
“And we’ve been very pleased that there is a rapidly-growing base of developers there. And so, we’re working all of the entire ecosystem from developer to the market to operations, the whole thing. And I just — I could not be more excited and enthusiastic about it,” he said.
Apple is also investing in new solar and wind power in the US and Europe, both to power its growing operations and users’ devices.
“And we’re working with partners in India and the US to replenish 100 per cent of the water we use in places that need it most, with the goal of delivering billions of gallons of water benefits over the next two decades,” Cook said.
Announcing the financial results for its fiscal 2024 second quarter ended March, Apple said it posted a quarterly revenue of USD 90.8 billion, down 4 per cent year-on-year.
For the fiscal’s second quarter, iPhone sales fell about 10.4 per cent to $45.9 billion.
Apple has also unveiled a record share buyback programme, with board authorising an additional $110 billion for share repurchases.
Meanwhile, Luca Maestri, Senior Vice President and Chief Financial Officer of Apple, said the company is particularly pleased with strong momentum in emerging markets, “as we set first-half revenue records in several countries and regions, including Latin America, the Middle East, India, Indonesia, the Philippines, and Turkey”.
Apple has been scripting an ambitious retail expansion in India. Last year, it launched two retail outlets (in Mumbai and Delhi) during Cook’s visit to the country in April 2023.
During his India trip, Cook had met Prime Minister Narendra Modi, as well as Minister for Electronics and IT Ashwini Vaishnaw, and Minister of State for IT Rajeev Chandrasekhar, as he underlined the company’s investment commitment to India.
Looking to replicate what China did to Apple’s business in the last 15 years, the tech giant is eyeing India’s massive market with an expanding middle class to power sales growth, and potentially make it a bigger base for the production of its iconic devices.
