Despite a challenging operating environment including supply constraints, strong foreign exchange headwinds and the impact of their business in Russia, Apple has once again registered a strong June quarter with a revenue record of $83.0 billion, up 2 per cent year over year, and quarterly earnings per diluted share of $1.20. Along with registering record revenues in developed and emerging markets, Apple has nearly doubled its revenue in India in the said quarter.
“We set June quarter records in the Americas, in Europe and in the rest of Asia Pacific region. We also saw June quarter revenue records in both developed and emerging markets with very strong double-digit growth in Brazil, Indonesia and Vietnam and a near doubling of revenue in India,” highlighted Apple CEO Tim Cook in the opening remarks. India contributes 2 per cent to Apple’s overall revenue (as per Counterpoint Research). “Apple is resilient even during macroeconomic headwinds,” Tarun Pathak, Research Director at Counterpoint Research told Business Today.
Contributing to Apple’s big quarter were the iPhone and services. For Apple iPhones alone, the Cupertino giant shipped 1.2 million units, registering a 94 per cent growth in the second quarter over the same period last year as per CyberMedia Research. Of the iPhone lineup available in India, iPhone 12 emerged as the best performing model accounting for 41 per cent share followed by iPhone 13 at 32 per cent, and iPhone 11 at 17 per cent. The iPhone 13 Pro variant was the fourth most popular model with a 4 per cent share and the iPhone 13 Pro Max with 3 per cent.
While the iPhone market share may be less than 5 per cent in the country in terms of shipments, Apple is number 4 in India in terms of revenue. Pathak further added, iPhone 13 did well, especially offline, driven by large format retail offers.”
Speaking on the various factors driving iPhone strength, Cook added, “It’s the product and the innovation within the product that’s driving it. The other key variables such as the size of the installed base have been growing significantly. We also set a June quarter record for switchers with strong double-digit growth that is fuelling the additional install base. We continue to execute across some significant geographies with low penetration of iPhones between Indonesia, Vietnam and India where we did quite well. iPhone tends to be the engine for those markets, particularly at the beginning of creating the market there for Apple products.”
Mac & Services:
And it wasn’t just the iPhones, but Mac too is gaining popularity in the country amongst consumers as well as enterprises. Apple CFO Luca Maestri said enterprise customers are increasingly investing in Apple products as a strategy to attract and retain talent. Wipro is another large mobile enterprise customer for Apple, which is investing in MacBook Air with M1 as a competitive advantage when recruiting new graduates globally. With the new M2 chip powering MacBook Air and the 13-inch MacBook Pro, Apple expects more customers to make Mac available to their entire workforce. “Macs and iPads are benefiting from consumer demand for work, learning and entertainment purposes in the new hybrid world,” Prabhu Ram, Head- Industry Intelligence Group (IIG), CyberMedia Research (CMR) told Business Today.
In addition to hardware, Apple’s Services revenue is showing growth. Of the wide Service offerings, Apple TV+ productions like Severance and Black Bird have worked well and the company is looking forward to creating and investing in more content throughout the year.
And as Apple acknowledged its active installed base of devices reached an all-time high for all major product categories, Pathak explains services are a direct indicator of installed base, which is also at an all-time record for all major segments in India. BusinessToday