Apple’s sales in India are brisk amid a buying frenzy

Bloomberg — Apple Inc. (AAPL) has recorded sales of nearly $6 billion in India. This represents an increase of almost 50% over the previous year’s income. The news highlights the growing importance of the Indian market for the tech giant, especially now that CEO Tim Cook plans to come to the country to open the first local Apple Stores. Although the company expects its total revenue to decline globally, it has identified India’s growing middle class as an opportunity for expansion..

The launch of Apple’s online store in India last year was a success. But the company wants to accelerate its growth in the country by opening physical stores. Cook is expected to open India’s first Apple Stores this week, the first in Mumbai’s financial district and the second in the capital, New Delhi. The move is significant as Apple does not have a small market share in India due to the high cost of its products.

Apple’s sales in India soared during the pandemic as customers bought iPhones, iPads and MacBooks to work and study from home. That momentum continued, aided by financing and trade-in options.

“Apple’s sales in India are generally driven by iPhones and handhelds, but its enterprise MacBook business has also started gaining momentum in the past two years,” said Navkander Singh, analyst at ITC. “Apple can expect its sales and marketing levers to continue its aggressive sales recovery.”

However, its base is small – only 4% of India’s nearly 700 million smartphone users own iPhones – the world’s second-largest mobile market is dominated by cheap local brands and Chinese manufacturers and South Koreans. However, the Cupertino, California-based company took the top spot last year for unit sales of devices above $365, according to Counterpoint research.

Apple stores are key selling points and showcases for the world’s most valuable company, and often become tourist attractions. Additionally, the new stores in India will also serve as service centers, a potential sales hub that facilitates product returns and repairs.

The company does not break out revenue from India in its income statements, but must report its annual sales in the country to local authorities. As of March 2022, its sales were 333.8 billion rupees ($4.1 billion).

Although it accounts for less than 2% of Apple’s global revenue, the market’s importance is growing and the company is also expanding its local manufacturing footprint.. Apple ramped up production of iPhones in India to more than $7 billion last year as part of efforts to reduce its dependence on China at a time when tensions between Washington and Beijing continue to rise.

Cook’s push in India also means it faces risks such as adverse import tariffs on everything from components to finished products, which could affect retail prices and demand. The country is known for sudden changes in rules and regulations, which can expose companies to unexpected costs. However, the market’s growth potential is hard to ignore.

“India is a very interesting market for us and is one of our key focus areas,” Cook said during an earnings conference call in February. “We’re very focused on the market.”

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