Despite selling a record 74.8 million iPhones in the last quarter, Apple has recorded one of the slowest quarters in terms of growth. Net income and revenue were only two percent better than last year. That said, Apple India has recorded impressive growth, and CEO Tim Cook even said that the country is “incredibly exciting.”
Apple’s iPhone sales in India registered a 76 percent growth year-over-year, which is pretty impressive when you compare it to the 18 percent year-over-year growth in Greater China. However, we should not forget that the base is quite small when compared to China. While the company wouldn’t reveal exact numbers, Cook said, “India’s growth, as you know, is very good. It’s quickly becoming the fastest growing BRIC country. It’s the third largest smartphone market in the world, behind China and the United States.”
As for revenue, Apple India garnered a 38 percent year-on-year growth in the first quarter. While Apple again didn’t reveal any specific numbers, the rate of growth is way above the global standards. Recently, Apple India crossed the $1 billion sales mark for the first time ever.
As per a recent Registrar of Companies (RoC) filing, Apple posted revenues of Rs 6,472.89 crore and net profits of Rs 242.85 crore in the financial year. This marks a 44 percent increase from the previous year, when Apple posted revenues of Rs 4,500.35 crore and Rs 119.48 crore.
A recent Counterpoint Research report also claimed that Apple had sold 800,000 iPhones in India in the fourth quarter of 2015. The report says that the iPhone 5s accounted for 30 percent of the shipments, whereas the iPhone 6s and iPhone 6s Plus accounted for less than 50 percent in the same period. In comparison, the 2014 flagship iPhone 6 contributed for around 70 percent share in the same period last year.
Cook is quite bullish about the Indian market, especially the demographics of the market. “The population of India is incredibly young. The median age there is 27. I think of the China age being young, at 36, 37 and so 27 is unbelievable,” Cook said. “Almost half the people in India are below 25. And so I see the demographics there also being incredibly great for a consumer brand and for people that really want the best products,” he added.
Despite the slow growth, Cook has promised investments in countries like India. “We have some great things in the pipeline, and we strongly believe in investing during downturns like the one everyone’s going through. We’re continuing to invest in China, particularly with Apple Stores, new markets like India, other markets like Russia and Brazil where economies are tied to oil,” Cook said.
Cooks comments come a week after the Indian government confirmed it had received an application to open its own stores in India, both for offline and online channels.