Tom Cook 'bullish' on India as Apple posts record revenue
What's the story
Apple CEO Tim Cook is "very bullish" on India. It will be surprising if he isn't. After all, the company had a record-setting performance in the last quarter of 2022 in the country.
This came amid Apple's worst 'holiday quarter' in years.
The company has enormous plans for India, starting with the first Apple retail store in India expected to launch by March 2023.
Context
Why does this story matter?
Apple has had a fruitful 2022 in India. The company's revenue and shipments in the country took a giant leap last year.
As the tech giant plans to diversify its manufacturing units outside China, its performance last year will undoubtedly make India a likely contender to become Apple's next manufacturing hub.
Apple aims to make 2023 a significant year in the India-Apple relationship.
Quarterly performance
iPhone shipments increased by 18% year-over-year in Q4
In the last quarter of 2022, Apple's iPhone shipments in India increased by 18% year-over-year to two million.
Speaking to analysts after announcing quarterly results, Cook said, "Looking at the business in India, we set a quarterly revenue record and grew very strong double digits year-over-year, so we feel very good about how we performed."
"That's despite the headwinds," he added.
2022
Apple's market share in India grew to 5.5% in 2022
The year 2022 was Apple's best in India yet. Per CyberMedia Research (CMR) data, the company's shipments in the country grew 11% year-over-year.
This increased Apple's market share in India to 5.5%, its highest ever. Of the two million iPhones shipped last quarter, the newly launched iPhone 14 series made up 59%.
iPhone 13 series captured 32% of sales.
Opportunity
Apple is putting a lot of emphasis on India: Cook
Cook said of post-pandemic opportunity in India, "We actually did fairly well through COVID in India, and I'm even more bullish now."
"That's the reason why we are investing there by bringing retail there, bringing the online store there, and putting out a significant amount of energy there," he added.
"We are putting a lot of emphasis on the market."
Overall quarter
Apple's year-over-year revenue declined for the first time since 2016
Apple overall had a tough last quarter. The company's sales declined by 5% compared to the year prior, the first year-over-year decline since 2016.
It recorded $117.15 billion in revenue, down 5.49% year-over-year. While the services revenue jumped 6.4% year-over-year, the revenue from most products, including iPhone, declined.
Cook attributed this to a strong dollar, production issues in China, and macroeconomic headwinds.