Apple’s India profit rises 32% as sales volumes surge : Tech News

Apple Inc’s net profit from India rose 32% and revenue from operations grew 68% in the fiscal year ended March 2021, according to the iPhone maker’s latest regulatory filings with the Registrar of Companies (RoC).

Apple India posted revenue from operations, or actual sales, of Rs 22,845 crore, crossing the $3 billion mark, for the year. The growth in fiscal 2021 was the fastest in five years, and analysts said the pace had quickened further in the first half (April-September) of this fiscal year.

The local unit of the Cupertino, California-based company posted a net profit of Rs 1,226 crore for the year.

Market tracker IDC India research director Navkendar Singh said this fiscal year, the growth for Apple in India is on track to be more than last when almost four months were lost due to the lockdown. Demand is also more robust than last year, with consumers preferring to buy premium products as incomes are getting restored. But supplies are hit due to a global crunch in the availability of semiconductors.

IDC estimates Apple will see the biggest quarter for its iPhones in July-September in terms of volume, more than the previous best of 1.3 million units in the December quarter of 2020.

“All of Apple products right from iPhone 11, 12, 13, SE, Airpod, Apple Watch and iPad have reported strong growth. In fact, the just-concluded September quarter is the highest ever for Apple in India in terms of volume sales. In the current quarter too, Apple demand is strong due to festive sales, though supply is a critical challenge,” said Singh.

Apple Inc chief executive Tim Cook said in its earnings call last week that the company had doubled sales in India during its global fiscal year which ended in September. However, he did not share the numbers and the company does not file quarterly or half-yearly results to the RoC.

An email sent to Apple India remained unanswered at Monday press time.

Analysts said the 68% surge in revenue last fiscal year for Apple India would also be one of the fastest among all consumer electronic and smartphone makers since every company had lost a quarter due to the Covid lockdown.

“During the midst of the pandemic, one would have expected Apple’s top line to decline in light of its products being discretionary purchases. Apple’s resilience can be seen by the fact that not only its top line grew on a year-on-year basis without any hiccups, but within a span of the past five years, it achieved maximum top line growth in FY21,” said Mohit Yadav, founder at business intelligence firm Altinfo.

India’s largest consumer electronics company, Samsung India, which recently filed its financials to the RoC, reported less than 1% growth in revenue from operations in FY21 at Rs 75,886 crore. Financials of Xiaomi, LG, Oppo and Vivo are awaited.

According to the latest report by Counterpoint Technology Market Research, Apple was the fastest growing smartphone brand in India during the July-September quarter, with a 212% year-on-year expansion, and led the premium smartphone market (handsets priced above Rs 30,000) with a 44% share.