Apple India profits climbed 76% in FY23, local reports claim

Apple opens its second retail store in India in Delhi April 20

To put some context around Apple’s business in India, consider this: The company’s net profit there climbed 76% in FY23, according to a regulatory filing.

Sales up, revenues up, fastest growth 

India’s Registrar of companies claims Apple’s revenue there reached Rs 50,000 crore in FY23. Sales increased 48% by value. That is the fastest growth in net profit for Apple in India for the last five years, local reports claim.

The company was the biggest India-made smartphone exporter in the April-August period, exceeding 50% of the total estimated unit exports in the period, followed by Samsung.

Of the 12 million smartphones shipped out of India in June, Apple accounted for almost 50%, local reports claimed.

Apple also leads the ultra-premium smartphone market in India, where it holds 59% share. In other recent news, we heard Apple shifted 1.5m phones in India’s key shopping season.

Local manufacturing expanding fast

Giant India conglomerate, Tata Group, will soon begin manufacturing iPhones for Apple in India following its purchase of manufacturing facilities there from Wistron.

Apple plans to increase manufacturing capacity in India fivefold over the next five years, local reports claim today – up from $7b to $40b value of production.

And space to grow in with services

The reports reveal that 94.6% of Apple India’s revenues are generated through product sales and 5.4% through services and maintenance. This shows a lot of room for growth, particularly around services, and I’m in little doubt Apple management will be working on increasing attachment rates – though the recent services price hikes may not work quite so well in some nations.

All the same, the only way is up given services now generate 30% of Apple’s international revenues.

A six-fold increase in sales adoption in India is not impossible, particularly if Apple can reach deals to distribute local content.

Local content may kick it higher

With this in mind it may matter that TV+ is now being made available within the Tata Play Bing bundle. That’s a 399 rupee per month bundle that combines some of the best video streaming services in India, including content from Disney and Lionsgate.

I also think Apple will seek to expand the available catalog of India-made entertainment across its services business, if only to capitalize on the growing number of iPhones in use there. Keep track on Apple’s business in India via our dedicated India feed.

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