Apple is Selling Record Number of iPhones in India, Reveals Apple CEO Tim Cook

Apple has been witnessing growth in its iPhone sales in India, where prices are among the highest at launch worldwide. 

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Apple announced its September quarter revenue at the earnings call and revealed that the iPhone, Mac and iPad brought in record revenue for the US tech giant. CEO Tim Cook revealed that the company reported quarterly revenue of $90.1 billion, an 8 per cent increase from a year ago. Apple posted a net profit of $20.7 billion for its final quarter of 2022 which ended in September. The company also revealed that the iPhone set a new revenue record, with India setting a new all-time revenue record.

“Across nearly every geographic segment, we reached a new revenue record for the quarter and we continue to perform incredibly well in emerging markets with very strong double-digit growth in India, South East Asia and Latin America,” Cook said (via) during the earnings call. The iPhone raked in $42.6 billion in terms of revenue during the September quarter, growing 10 per cent year-on-year. The company also recorded an annual revenue of $394.3 billion, which is also 8 per cent more compared to the same time last year. 

India has been one of the key markets for Apple for the past quarters. The company has been witnessing growth in its iPhone sales in India, where prices are among the highest at launch worldwide. 

But How is Apple Witnessing Growth in India Despite the High Price?

It is no secret that India is among the most expensive markets to buy an iPhone at launch. While the iPhone 14 is priced the same as the iPhone 13 at Rs 79,900, its price is still higher than the US market, where it is available for $799 (roughly Rs 65,800). The iPhone 14 Pro models, on the other hand, are a lot more expensive in India compared to the west. The iPhone 14 Pro base model is priced at Rs 1,29,900, whereas it is priced at $999 (roughly Rs 82,300). The iPhone 14 Pro Max, which sits at the top of the lineup, is priced at Rs 1,39,900, compared to the US price tag of $1099 (roughly Rs 90,500). 

In Apple’s defence, the increasing inflation and weakening local currency against the dollar are factors for the increasing cost of components and logistics. Not to forget the tax and duties that imports attract as the Pro models are not manufactured in India.

One of the reasons for Apple’s strong growth in the Indian market could be e-commerce offers. The iPhone 13 was available for around Rs 50,000 during the Flipkart sale. The same was the case with the iPhone 12, which was available for around Rs 40,000. While these phones are up to a couple of generations old, they have minor differences over the new iPhone 14. With the iPhone 14 getting a slightly bigger battery, a new main camera, more RAM and the same processor as the iPhone 13, it might not be the best value for money offering from Apple.

Therefore, consumers are probably considering buying older iPhone models. It might not bring the best profit margins for Apple, but with more consumers getting on board the iOS experience, it also gives Apple the opportunity to lure customers into its services and other ecosystem products.

iCloud+, which is Apple’s cloud storage, is part of the Apple One bundle. Consumers with an iPhone can also subscribe to Apple TV+, Apple Arcade or Apple Music in India for a monthly premium. Apple revealed that it has over 900 million paid subscriptions across the services, which is 155 million more compared to the same time last year.

It is not just the services as customers might purchase other Apple products that work with the iPhone and gradually get locked into the ecosystem, aka the Apple Walled-Garden. Cook, at the earnings call, also revealed that the Mac lineup performed well globally. Apple’s Mac models generated an all-time high revenue of $11.5 billion, which is 25 per cent better compared to the previous year. The iPad revenue was 13 per cent down at $7.2 billion, whereas Wearables, Home and Accessories revenue was at $9.7 billion.

Did you buy a new iPhone earlier this year? Which one was it? Let us know in the comments below.