Apple has reported its latest quarterly earnings that show modest growth in revenues, but slower iPhone sales. The company generated $52.9 billion in revenue, with a 4.5 percent growth as compared to the same period last year. Apple CEO Tim Cook once again pointed out India as the bright star and the most potent driver of the company s growth in the near future. Also Read - New iPhone SE to be the most affordable 5G phone from Apple, to launch in 2022Also Read - iPhone 13 launch date and more details tipped as part of new leaks
According to Tim Cook, Apple witnessed double digit growth in India with a new March record without giving away particular figures. Cook also highlighted India s growing economy and improved 4G penetration. “We’re optimistic about our future in this remarkable country with its very large, young, tech-savvy population, fast-growing economy and proving 4G network infrastructure, he commented. Also Read - iPhone 12 Mini reaches end of production already, say rumours
When asked about Apple s manufacturing plans in India and other investments, Tim Cook responded by saying: “Yes, we make it a point not to forecast by idea. We just provide a current quarter forecast. But hopefully, you’ve seen as we began to give you more information about India, we’ve been investing quite a bit. We have a ton of energy going into the country on a number of fronts and it is the third largest smartphone market in the world today behind China and the United States.
And so we believe, particularly now that the 4G infrastructure is going in the country and it’s continuing to be expanded, that there is a huge opportunity for Apple there. And so that’s that and the demographics of the country is why we’re putting so much energy there, he noted.
The 4G network investment really began rolling in in a significant way toward the last quarter of last year, as you know. But they are moving fast. They’re moving at a speed that I have not seen in any other country in the world once they were started. And it is truly impressive …” Tim Cook said in response to another question related to its India plans.
It s not the first time Apple has highlighted India as its future driver. Last year, while presenting the second quarter earning report, Tim Cook disclosed that the company had posted a 56 percent rise in iPhone sales in India.
I view India as where China was maybe seven to ten years ago from that point of view, and I think there s a really great opportunity there, he had commented. ALSO READ: Apple sees first revenue decline in 13 years; but iPhone sales grow 56% in India
Apple is looking to accelerate its growth in India as it is in the process to start local manufacturing. The company will be starting its India manufacturing foray with its less-buzzing Apple iPhone SE. However, it s not just the local manufacturing the company is looking at.
From a host of investments it has made in India, it appears the company is looking to develop a comprehensive ecosystem in the country. Last year, it announced setting up a technology development center in Hyderabad with an investment estimated at Rs 150 crore.
Tim Cook s bet on India s burgeoning 4G market comes as no surprise. Research agency Counterpoint estimates that approximately 200 million 4G smartphones will be sold in India in the next five years. The rapid growth in the 4G segment is also attributed to the lowered data tariffs by local telecom operators such as Reliance Jio and Airtel. For one, Reliance Jio has gained over 100 million subscribers in just 170 days of its commercial launch.
Overall, Apple reported selling 50.8 million units of iPhones, falling short of 52 million units expected earlier. It reported $52.9 billion revenue as compared to estimated $53.02 billion.
We are proud to report a strong March quarter, with revenue growth accelerating from the December quarter and continued robust demand for iPhone 7 Plus, said Tim Cook.
We ve seen great customer response to both models of the new iPhone 7 (PRODUCT) RED Special Edition and we re thrilled with the strong momentum of our Services business, with our highest revenue ever for a 13-week quarter. Looking ahead, we are excited to welcome attendees from around the world to our annual Worldwide Developers Conference next month in San Jose.
While asserting a slowdown in sales, Tim Cook blamed the number of rumors and reports about future products that are delaying customers purchasing decision. “We are seeing a kind of delay in purchasing behavior that we think is a consequence of the number of rumors and reports about future products,” Apple CEO Tim Cook told CNBC.
“That is happening. However, if you look at iPhone outside of greater China, iPhone units grew very nicely. We had more upgraders in the first half than ever before. And we had more switchers than ever before. There is a lot of good news in there.”