Thanks to an aggressive pricing and promotion program, Apple’s India profits have shrunk to a third to Rs 112.66 crore in 2013 from Rs 311.5 crore last year, according to the Apple India’s Registrar of Companies filing. First reported by Times of India, the filing reveals that the company’s sales increased by 51 percent to Rs 3,030.11 crore from Rs 2,003.9 crore last year. Also Read - iPhone 13 to come with faster charging as compared to iPhone 12Also Read - Apple TV Plus for free: PS5 owners get six months subscription free of cost
This is very different from last year’s results when sales had shot up by 223 percent while profits increased by 431 percent to Rs 311.5 crore. An aggressive buyback scheme for the iPhone 4, where Apple paid Rs 5,000 to provide a discount of Rs 7,000 to customers who exchanged their old smartphones for the iPhone 4. Also Read - This photo shot with iPhone X by an Indian wins iPhone Photography Awards
Apple was expected to cross the $1 billion mark in revenue from India but that has not happened as the company absorbed the unfavorable foreign exchange rate, deciding to keep prices steady than increasing them even as the Indian Rupee fell to record lows. Apple went for market share this year, sacrificing its profits, which were negligible if viewed against its global earnings. Having said that, its marketing campaign consisting full front page ads in major national dailies, hoardings at strategic locations, buyback schemes and EMI, have ensured that it has doubled its smartphone market share to 2 percent from 0.8 percent last year. While the market share might sound tiny, Apple is only second to Samsung in India when it comes to market share by value.