Despite supply chain issues at Apple’s production facilities in China, India may continue to post sales growth in Q4 for the iPhone-maker, according to experts’ forecasts. Global technology market research firm Counterpoints said sales for Apple products will increase 15-16 per cent year-on-year for the fourth quarter of 2022 calendar year. This is because the smartphone manufacturer’s decision to manufacture most of its iPhone 14 portfolio in India allowed it to skirt the ongoing supply chain issues in China.
While the turmoil at Apple’s key manufacturing hub of Zhengzhou, China, is likely to result in a global shortfall of 6 million iPhone Pros, Apple is likely to retain its growth momentum in sales for India. India has performed well in sales for the iPhone-maker for the past few quarters, being one of the few global markets to retain growth momentum.
While smartphone sales are in the red in India as well and the waiting time for iPhone 14 Pro has skyrocketed, experts forecast the sale of Apple’s overall portfolio to continue to grow. An expert explained that bringing the production of Apple’s latest iPhone 14 in India in a short time after its launch, along with good prices and demands for Apple’s older iPhone models in India, have spurred Indians to increase their appetite for Apple products. Therefore, while iPhone 14 Pro shipments to India declined by 18 per cent in October, overall sales in India will not be too affected.
Due to their high price, iPhone Pros usually contribute very little to the overall sales portfolio for Apple. However, demand for iPhone 14 Pro has been better than expected in India this year. But because iPhone Pros are only manufactured in Foxconn’s China facilities, the global supply shortage of iPhone 14 Pro has affected India as well. According to retailers, wait times for iPhone 14 Pro are averaging at 4 weeks and even more in tier 2 and tier 3 outlets.
A bigger concern for Apple this quarter is going to be its Western markets where the peak buying or festive season begins with Thanksgiving in November and Christmas in December. Indian peak buying season happened earlier in September and October where the supply chain issues were not as bad and high inventories also helped Apple fulfill the demand. The Hindu BusinessLine