As Apple’s sales in India reached a new record of nearly $6 billion for the year ending in March, the Cupertino based Tech giant’s CEO, Tim Cook arrives in India to open the company’s first local stores.
This move explains how important has the Indian market become for Apple and also reflects the efforts that the tech giant is putting in to expand its presence and offerings in the region.
Apple’s Revenue Increases by 50% in India
This year witnessed a 50% surge in the Apple’s revenue from India, from $4.1 billion the previous year to $6 billion in the latest fiscal year.
Since the company struggles to capture significant market share in the country due to the high cost of its products, this underscores Apple’s increasing focus on the Indian market.
A decline in global revenue has been projected by Apple and it has scheduled the quarterly earnings on May 4.
The expanding middle class in the entire population of 1.4 billion, poses a promising opportunity for Apple which is also ramping up local production. This move comes as global demand for tech products slows down.
It was in 2020, that the tech giant launched its online store. In order to boost the sales efforts, Apple has opened the Apple store in Mumbai’s upscale business district and today also in New Delhi.
It was during the pandemic, that Apple witnessed a surge in the sales as the consumers purchased iPhones and iPads to facilitate work and study from home.
What has further made these products accessible to a wider range of consumers is the financing and trade-in options.
Researcher Counterpoint said that Apple’s market share in India for devices priced above $365 was ranked number one in 2022. This is despite the fact that Apple has only a small base of four percent of India’s nearly 700 million smartphone users. The same market currently is dominated by cheaper local brands, as well as Chinese and South Korean manufacturers.
Apple Opens Two Local Stores Amid Efforts to Increase Sales
The Apple’s first stores shall go long way in increasing the sales by acting as a key retail and showcase points for the company. These stores will also double as support centers, making it easier for customers to return products and receive repairs.
For the year ending March 2022, Apple posted sales of 333.8 billion rupees ($4.1 billion) in the country.
Notably, in order to reduce the reliance on China amid escalating tensions with the US, Apple is also expanding its local manufacturing footprint in India, having tripled its production of iPhones to more than $7 billion in the last fiscal year.
With the Apple fever soaring, what lies in ahead is a huge opportunity. But also there are potential risks in the terms of high import duties for both components and finished products, which can impact retail prices and demand.
Also, the Indian government is known for high import duties for both components and finished products, which can impact retail prices and demand. India is also known for sudden changes in
Despite all this, India is definitely one of the cynosures for Apple in upcoming years.
