India presents 'huge opportunity' for Apple: CEO Tim Cook
What's the story
Apple CEO Tim Cook sees India as a "huge opportunity" for growth. With sales rising to $6 billion in FY23 from $4 billion in FY22, Apple is capitalizing on India's premiumization trend.
Currently, the company dominates the ultra-premium smartphone market with a 59% share, per Counterpoint Research.
Cook also mentioned Apple's retail expansion in India, including stores in Mumbai and Delhi, is exceeding expectations.
Details
Apple currently manufactures iPhones in India
Apple is also investing in India in order to expand its manufacturing capabilities beyond China.
The government's production-linked incentive (PLI) scheme has encouraged Apple to manufacture iPhones, including the latest iPhone 14.
The company produces its smartphones through contract manufacturers like Foxconn, Pegatron, and Wistron.
Plans to expand into other products, like AirPods, are also in the works.
Implication
Apple hit record revenue in India in June quarter
For the quarter ended June 30, Apple's revenue fell 1% YoY to $81.8 billion, dragged by a 2.4% YoY decline in iPhone sales at $39.7 billion.
As of FY23, iPhone exports from India account for almost half of the country's mobile phone exports.
Cook said that Apple achieved a revenue record in India with "strong double digits" growth in the June quarter.