Apple India attributes its increased revenue of Rs.13,097.64 crore and a net profit of Rs 896.33 crore to its products like iPhone X and Mac computers
According to the Registrar of Companies, Apple India had filed a 12 per cent increase in its revenue and its total income increased from Rs 11,704.32 crore the previous year to Rs 13,097.64 crore this financial year. The premium brand’s net profit also increased from Rs 373.38 crore to Rs 896.33 crore.
Apple has attributed its rise to its high-end products such as iPhone X and Mac computers. It has also been informed that the brand saw a slower pace in its sales due to a recent price hike of iPhones that resulted in declining demand. On the contrary, Tarun Pathak, associate director, Counterpoint Research, attributed the increased sales of iPhones 7 and 6 to the recent price hike and added features. The result was a rise in the average selling price in India.
Apple’s competitors
Chinese brands like Xiaomi and BBK Electronics and Lenovo have given tough competition to Apple sales in India. A recent Counterpoint Market Research Survey revealed that smartphone users increasingly preferred OnePlus over the other available brands. Only a few of the respondents expressed brand loyalty to Apple. Brands like Oppo, Vivo and OnePlus are owned by BBK Electronics and these handsets are outnumbering Apple sales in India, thereby acquiring a huge market share in the smartphones segment in the country.
Xiaomi and BBK Electronics had a total of around Rs 22,947.27 and Rs 23,173 crores revenue in FY18 respectively. The latter had overtaken Apple in India in FY17 too with Rs 14,343 crore revenue. Samsung had also contributed to the decreasing sales of Apple’s premium phones.
Future growth prospects
Apple has restructured its India wing and appointed Michel Coulomb as its sales and distribution head. It expects to grow in the coming fiscals with new business strategies. The new country head has already brought down the number of distributors in India and is planning to draw higher sales from the Apple stores
The industry expects Apple India’s profit growth to continue outpacing revenue even in the current fiscal year with new country head Michel Coulomb restructuring its sales and distribution strategy.
