When Apple filed its latest quarterly accounts in February, this showed a 5.5 percent drop in turnover for the fourth quarter from last year — to $117.2 billion. iPhone sales finished down 8.2 percent, and Mac computer series sales were down 28.7 percent from the same quarter last year.
– CEO Tim Cook said regarding the presentation of the results, it is clear that we must bring in customers that we did not previously have in order to grow.
New giant market
The largest and most important market for new growth is India. Android phones have more than 95 percent market share in India, while Apple has less than four percent, according to Statcounter.
The average price of a smartphone in India is around NOK 2,300. The cheapest iPhone models are almost double that, and the 14 series is just under NOK 10,000.
Apple believes there are opportunities for growth. Sales of iPhones in India increased by more than 35 percent last year — to 6.5 million, according to analysis firm IDC. Annual economic growth of six to seven percent is expected for many years to come.
Over time, India will become one of Apple’s largest markets. I think the potential is here, says Tim Cook in an interview with India’s Mint.
On Tuesday, Cook attended the opening of the first Apple Store in the country – in the big city of Mumbai. Another outlet opens in New Delhi on Thursday. At the same time, it is notable that Apple has been present in the Indian market for 25 years this week.
In fiscal 2022, Apple’s sales amounted to $74 billion in China, Hong Kong, and Taiwan. This corresponds to 18 percent of Apple’s total revenue. Apple generated just under $6 billion in revenue in India in the 12 months to the end of March, according to Bloomberg.
Like China 15-20 years ago
Cook previously compared India to the Chinese market, where Apple had not had any significant sales for many years. Analysts believe this may be a valid comparison.
– If you look at India now, it is very similar to China 15 or 20 years ago. There is of course an increase in wealth over time. CFRA Senior Analyst Angelo Zeno told CNBC that this will help Apple enter India and gain significant revenue.
Cook says Apple is “in everything” in India in an interview with Mint and notes that Apple has started production in the country, supporting developers and hiring support jobs.
We see India as wonderful from many points of view. The skills here are unique, the people, the culture, the market dynamics and the feeling that anything is possible. This all bodes well for India in the future and we want to be a part of it, says Cook.
Cook will meet Prime Minister Narendra Modi and business leaders during the nearly week-long visit.
“Given Apple’s size, this is a major player that can set standards and influence policy decisions. The company has been a catalyst for growth in China. We see a similar trend in India as Apple diversifies its supply chain towards India and a local ecosystem for the technology sector develops,” the group writes. Mirae Asset Financial Group in a new report, according to The New York Times.
Unusual trip
Cook, who in the 1990s was the architect behind Apple’s use of Taiwanese contract manufacturers in China, wants to spread the risks away from China and ramp up production in Vietnam, Thailand and India.
Foxconn, the Apple court manufacturer that built “Iphone City” in Zhengzhou, China, is in the process of building a large factory in Bangalore, India.
About 95 percent of iPhones, iPads, Airpods, and Macs will be produced in China in 2022. In 2024, ten percent of iPhone models will be produced outside of China, including India and Vietnam. JPMorgan Chase writes in a new report that 25 percent of Apple products will be produced outside of China by 2025.
– India’s trip is going to be extraordinary, whether you measure it in GDP or however you want to measure it. Cook Lament says the possibilities are enormous.
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