“iPhone grew in every geographic segment, marking a new September-quarter revenue record for the category… And we continue to be excited by the enthusiasm we’re seeing in India, where we set an all-time revenue record,” Cook said during the company’s earnings call Friday.
It’s not just iPhones that are growing rapidly in India. iPads also set a record in the quarter, contributing to an 8% surge in revenue for the segment globally.
Revenue for the segment globally. While the absolute revenue figure for Apple in India wasn’t available, Counterpoint Research has said it expects this to grow 18% in 2024 from $8 billion in 2023, mostly due to iPhones sales, and cross the $10 billion mark in 2025, driven by higher demand for the Pro models.
In the quarter, “Apple maintained positive growth momentum, supported by premiumisation trends and the aspirational appeal of the brand”, said Prabhu Ram, VP, industry research group, Cybermedia Research (CMR).
Ram said Apple’s growth in the quarter was driven primarily by sales of older generation iPhones, including the iPhone 15 and iPhone 14 series. Additionally, iPads saw a strong quarter, with contributions from both legacy and new models.
According to CMR, the iPhone 15 series accounted for 53% of Apple’s shipments in the quarter, followed by the iPhone 14 and iPhone 16 series.
The company’s global revenue also set a quarterly record.
Diversified iPhone Production Helps
Global revenue surged 6% on-year to $95 billion, driven by the highest growth for hardware in almost two years, according to market trackers. Even with slow pick-up of its latest models in some regions, Apple achieved a record quarter for iPhones in terms of shipments, revenue and average selling prices.
Apple’s diversified iPhone production, notably in India, has significantly reduced lead times, streamlining pre-order fulfillment and stimulating local demand through competitive pricing,” said Chiew Le Xuan, analyst at research firm Canalys.
Supplementary production in India of previous-generation iPhones, such as the iPhone 13 and iPhone 15, have further bolstered Apple’s operator channel shipments into the US and Europe, said Xuan.
This helped the US giant reclaim market share in the midrange segment and capitalise on replacement demand, according to Xuan of Canalys.
Apple’s financial year starts on the last Sunday of September.
iPhone sales in India surged 55% on-year in the September quarter to cross 3.3 million units, even as the rest of the market grew at only 7% on-year during the same period, Canalys said, underpinning the pace at which sales of the device are growing in the country.
To capitalise on this popularity, Cook confirmed Apple will be opening four more flagship retail stores in India, adding to the two it has in Mumbai and Delhi. According to reports, Apple is set to open another store each in those two cities, along with new ones in Pune and Bengaluru. The company has started hiring personnel for the upcoming stores.
“We can’t wait to bring four new stores to customers in India,” Cook said.
Apple cornered the second highest market share in India in terms of value at 22% in the JulySeptember period, according to Counterpoint Research, closely trailing Samsung.
“The brand has aggressively expanded into smaller cities, driving significant value growth with an increased focus on newer iPhones,” senior research analyst Prachir Singh said.
The research firm said sales were aided by strong shipments of iPhone 15 and iPhone 16 models ahead of the festive season.
“As consumers increasingly invest in premium smartphones, Apple has cemented its status as the top choice for premium buyers in India, supported by its aspirational image, and expanding footprint,” Singh added.
