apple india: Apple India FY22 net profit up 3% year-on-year, revenue up 45%

apple india: Apple India FY22 net profit up 3% year-on-year, revenue up 45%
Apple Inc reported record revenue in India in the July-September quarter despite a “tough environment” as demand for its premium devices grew, further fueled by discounts and deals.

Market trackers expect Apple to post record growth in the new fiscal year as well, supported by sustained demand for its premium devices.

The company follows a fiscal year from October to September.

iPhone shipments are expected to reach a record 6 million in 2022 compared to 4.8 million in 2021, according to IDC India.

This would give the Cupertino, California-based company a volume market share of about 4% versus more than 3% in 2021.

“We continue to do incredibly well in emerging markets with very strong double-digit growth in India, Southeast Asia and Latin America,” Chief Executive Officer Tim Cook said during the iPhone maker’s fourth-quarter earnings call.

Apple said it had set an all-time revenue record in India.

“We set records in the September quarter in the vast majority of markets we track, and our performance was particularly impressive in several large emerging markets, with India setting a new all-time revenue record,” said CFO Luca Maestri. .

The company said that despite a stronger dollar and a difficult macro environment, it had seen “very strong double-digit growth.”

The rupee has been weakening against the dollar in recent months, driving up prices for imported components and consequently for handsets in a price-sensitive market.

However, analysts said demand for premium devices has continued to grow, compared to entry-level phones, boosting smartphone sales from the likes of Apple.

The company reported revenue of $394 billion, growing 8% year over year, with revenue records across all of its product segments and geographic markets. It did not specify revenue figures for India.

Regulatory filings obtained from business intelligence platform Tofler showed that Apple India’s net profit for the fiscal year ending March 31, 2022 grew 3% year-on-year to Rs 1,263 crore due to a 45% rise in sales. revenue to a record Rs 33,381 crore. . The company’s expenses in India rose 48% year-on-year to Rs 31,693 crore.

According to Cyber ​​Media Research (CMR), Apple iPhone shipments in India during the July-September quarter rose 8% year-on-year and a strong 44% sequentially to 1.7 million units on aggressive discounts and strong demand for premium smartphones. .

“In the third quarter of 2022 and in the run-up to the major holiday season, Apple’s previous generation iPhones, including the iPhone 12 and iPhone 13 series, posted profits thanks to aggressive discounts,” Prabhu Ram, Chief – industry intelligence group at CMR said.

Apple sold 4.8 million iPhones with an ASP (average selling price) of around $900-$1,000 in 2021.

“We expect around 15-20% growth in iPhone volumes during 2022 in India, thanks to slightly lower ASP due to aggressive discounts on iPhone 12 and iPhone 13 models during the festive season. Apple’s record revenue is due to lower base effect last year,” said Navkendar Singh, Associate Vice President, IDC India.

The lower ASP this year means Apple is expected to sell around 6 million iPhone units in 2022, Singh added.

Apple has been growing its business in India through deep discounts on older iPhone models and boosting local manufacturing through its three electronic manufacturing service partners (Foxconn, Wistron and Pegatron) in India, trackers said. market.

The company recently began manufacturing the latest iPhone 14 models in India, just a few weeks after a global launch, underscoring the growing importance of the South Asian nation to the US smartphone company’s global plans.

Credit rating agency Moody’s called the credit “positive because it will diversify its manufacturing base which is highly concentrated in China.”

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