iPhone India Annual Sales Surge over 50%

Apple's iPhone sales in India surged more than 50% in the year ended September, among the few bright spots for the smartphone maker that reported its first annual sales and profit decline in 15 years. “Our iPhone sales in India were up over 50% in fiscal 2016 compared to the prior year and we believe we're just beginning to scratch the surface of this large and growing market opportunity,“ Apple CEO Tim Cook said during an earnings call. Cook said India could be as big a market as China and would be crucial for the smartphone maker.
Apple shipped a record 2.5 million iPhones in India from October 2015 to September 2016, up 56% on year, according to an estimate by Hong Kong-based Counterpoint Technology Market Research. Apple is poised to replace Samsung Electronics as No. 1 in the premium segment in the current quarter on strong demand for the new iPhone 7 following the South Korean company's Galaxy Note 7 debacle.
In the just-ended quarter, Apple's revenue from Greater China fell 30% on year and declined 7% in the Americas -among its biggest markets. For the year ended September, profit declined to $45.7 billion from $53.4 billion and net sales fell to $215.6 billion from $233.7 billion.
Cook cited India's population and expected demand for 4G devices with the rollout of networks offering faster data speeds as reasons for his optimism.
Cook, who made his maiden trip to India as Apple CEO in May, told analysts it was important to look at the size of the middle class over the next decade, besides the age of the population -almost 50% of which is under 25 -and not just per capita income. “There's going to be a lot of people in the middle class that will want a smartphone and I think we can compete well for some percentage of those.And given our starting point, even though we've been growing a lot, there is a lot of headroom there in our mind and so we are working very hard to realise that opportunity,“ he added.
Cook pointed to Apple's partnership with Reliance Jio Infocomm as an indicator that 4G proliferation holds huge promise for the company as global smartphone sales slow. Apple has acknowledged supply constraints, especially for its larger screen iPhone 7 Plus. Following the Galaxy Note 7 debacle for Samsung, Apple is expected to become the country's top smartphone maker in the premium segment -devices costing upwards of Rs.30,000 -in the quarter ending December, said analysts, yet another high for the company to the end the year with.
Apple is expected to command 60% of the market by volume during the quarter. Its share in the overall smartphone market may rebound to 3% by the year end from 1.4% in the September quarter.

No comments: