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India is a major focus for us, says Apple at the earnings call

While announcing the financial results for the second fiscal quarter of 2024, which corresponds to the first calendar quarter of the year, Apple CEO Tim Cook and CFO Luca Maestri, said the company sees enormous opportunities from the India market, after opening two stores last year.

Some relevant extracts at the investor call:

There were revenue records in India as well as in Latin America, the Middle East, Canada, Spain and Turkey.

Apple is investing in new solar and wind power, working with partners in India and the US to replenish water usage, and has committed $200 million to nature-based carbon removal projects.

Apple revenue was roughly flat in the first half of the fiscal year, despite having one less week of sales and FX headwinds. There were first-half revenue records in Latin America, the Middle East, India, Indonesia, the Philippines, and Turkey. The first half diluted EPS record of $3.71/share was up 9% from last year.

For this India market, how much of the momentum you’re seeing would you associate with retail expansion strategy versus supply chain or manufacturing changes and strategies?

We did grow strong double-digits so we were very pleased about it, it was a new March revenue record for us. As I said before, I see it as an incredibly exciting market and it’s a major focus for us. In terms of the operational side, we are producing there. From a pragmatic point of view, you need to produce there to be competitive. Yes, the two things are linked from that point of view, but we have both operational things going on and we have go-to-market initiatives going on. We opened a couple stores last year and we see enormous opportunity there. We’re continuing to expand our channels and also working on developer ecosystem as well. We’ve been very pleased that there’s a rapidly growing base of developers there and so we’re working all of the entire ecosystem from developer to the market to operations, the whole thing. I could not be more excited and enthusiastic about it.

Is Apple approaching a point where all emerging markets might become bigger than current Greater China segment?

I think you’re asking a really interesting question. We were looking at something similar recently. Obviously China is by far the largest emerging market we have, but when we start looking at India, Saudi, Mexico, Turkey, Brazil, Indonesia, the numbers are getting large. We’re very happy because these are markets where our market share is low, the populations are large and growing, and our products are really making a lot of progress in those markets. The level of excitement for the brand was very high. It’s very good for us and certainly, the numbers are getting larger all the time, the gap to China is reducing and hopefully, that trajectory will continue for a long time.

CT Bureau

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