Major Apple Cupertino said Thursday it had doubled its business in India in the last quarter, and although its market share remained very low for the size of the opportunity, it was satisfied with the path it took in the second largest smartphone market in the world. During the company’s first-quarter fiscal year earnings call, CEO Tim Cook reiterated how his online store in India helped Apple achieve “impressive” results – and revealed how it plans to increase its market share in India going forward by creating physical retail stores. .
“India is one of those (markets), where our share is very low, it improved on a quarter of last year, and our business almost doubled during that time period, so we are satisfied with the path,” Cook said. “We are doing a number of things in the region, and we are putting the online store there for example, and the last quarter was the first full quarter of the online store and that got a big reaction to it and it helped us achieve the results that we got to the last quarter. There is also retail stores in the future, so we look forward to this being another great initiative, and we continue to develop the channel as well. “
Cook had confirmed last year that the company would open its first offline retail outlet in India in 2021. Although he did not share a schedule as such, several reports indicated that it could be sometime during the third quarter. Apple currently employs third-party vendors to sell its products in India. Once up and running, Apple’s offline retail outlet will become an extension of its online store in India which debuted on September 23, 2020. So far, this online store is the only Apple retail store in India and the numbers seem to make this a great start . Owning its own offline store would not only help Apple do things its own way – the way Apple liked it – it could also help Cupertino double its expansion efforts in India – from an access and sales standpoint.
Apple has been planning to do this for some time now, although it was not until after the government’s decision to reduce domestic sourcing standards by 30 percent for single-brand retailers in 2019, that path became somewhat clearer. Welcoming the move, Cook said, “We appreciate the support and hard work of the prime minister Narendra Modi And his team to make this possible, and we look forward to one day welcoming customers to the first Apple retail store in India. “
iPhone is Apple’s “showstopper” product, and once again, it’s back on the right track to make money for Cupertino. Apple’s revenue exceeded $ 100 billion for the first time in its history during the fourth quarter of 2020 and a historic holiday season, up 21% year-on-year, with iPhone sales reaching an all-time high of $ 65.6 billion. The previous best performance was $ 61.58 billion, which was achieved by Apple in the first quarter of fiscal 2018. The iPhone 12 is “well predicted”, giving the credibility necessary to the idea of a “super-cycle” event where more and more people are now ready. Desire – to upgrade from old iPhones so they can use newer, more futuristic technology like 5G.
Over the past few years, Apple has intensified its efforts to bring iPhones – especially low-cost iPhones – in India, and while this step does not necessarily guarantee a price cut, making more iPhones in India serves another important reason. It will reduce Apple’s long dependence on China. There are reports that Apple plans to start making the iPhone 12 series in India as soon as this quarter. Hopefully, this will be followed by a drop in prices. But aside from that, Apple today sells a “variety” of iPhones across price points giving buyers more options to choose from, so there’s at least one “new” iPhone for everyone.
There is no doubt that India is an important frontier for Apple, which is a great opportunity Cook said, and it will be interesting to see how things are going in the coming days.