Apple India sales reach $6 billion as Cook pushes retail

With sales in India hitting a new high of almost $6 billion in the year through March, Apple Inc. is more visible than ever in the country, highlighting how important the market has become to the iPhone maker as it prepares to open its first local store under the leadership of Tim Cook.

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The revenue of the company in India has increased by nearly 50%, compared to $4.1 billion a year ago, according to a person close to the matter, who asked not to be named as the information is not publicly available. It has been reported that Apple is expected to post quarterly earnings on May 4 and that the company expects to see a decline in total revenue worldwide.

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The Apple CEO is set to inaugurate the country's first Apple stores this week, a move intended to accelerate Apple's growth in a country where the company's smartphones and computers have never been able to capture more than a minuscule proportion of the market because of their high price tags. It's no surprise that Apple has identified India's expanding middle class as a great opportunity while technology demand has slowed globally, and it's also adding local production at an escalating rate as the country's middle class expands.

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The Apple Company, which has been selling its products in India through retail partners and online sales to date, did not respond to a request for comment.

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After launching an online store in India in 2020, the business is more than likely ready to boost its sales even further as it opens its first physical store in Mumbai on Tuesday in an upscale business district just a few kilometers from the financial hub. Two days after that, it will open another store in the nation's capital, New Delhi.

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The iPhone, iPad, and MacBook sales in India soared during the pandemic as customers bought devices to work and study from home, including iPads and MacBooks. And this momentum has continued even after the pandemic has ended as customers continue to use Apple devices to work and study.

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Navkendar Singh, a research analyst at researcher IDC, said the Macbook enterprise business has begun gaining traction in India over the past two years, in part due to the iPhones and wearable devices that are driving Apple's sales in India. "In order for Apple's sales and marketing levers to continue to work hard, we can expect a surge in sales to continue for some time to come."

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Even so, the iPhone's market share is still very small - only about 4% of the nearly 700 million smartphone users in India own one - since the world's second-largest mobile market is dominated by cheaper local brands as well as Chinese and South Korean manufacturers. However, Cupertino, California-based Apple ranked No. 1 in unit sales of devices that sold for over 365 dollars last year, according to research firm Counterpoint, which ranks units by their price. 

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While Apple's retail stores serve as key retail and showcase points for the world's most valuable company, they have also become tourist hotspots over the years. It should also be noted that the new India outlets will also double as support centers, which will be an additional selling point as it will make returning and repairing products easier.

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There is no mention of India's revenue in the company's earnings statements, but it is required to report its annual sales in the country to local authorities as part of its annual reporting requirement. As of March 2022, the company had posted sales of 333.8 billion rupees ($4.1 billion) for the year.

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Apple generates less than 2% of its global revenue from China, but the market's significance is growing as Apple expands its local manufacturing footprint in addition to the market's importance. There was an increase of more than 70% in the production of iPhones in India last fiscal year, as part of Apple's efforts to reduce its reliance on China as tensions between Washington and Beijing continue to escalate between the two countries.

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Moreover, Cook's India push also means that he is prepared to take on risks such as India's notoriously high import duties, which can affect retail prices and product demand depending on what component or finished product the importer uses. As a result of sudden changes in rules and regulations in the country, businesses are also exposed to unexpected costs and liabilities as a result. Even so, the market's growth potential makes it hard to ignore because of its potential.

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In a February earnings call, Cook explained that India is a hugely exciting market for us and that is one of our main focuses. "Our focus is on the market right now, and we are putting a lot of effort into it."