Apple’s India sale hits almost $8bn

Apple Inc’s annual sales in India hit a record of almost $8 billion, underscoring a rapidly growing market where the iPhone maker now assembles more of its devices and operates two flagship stores, reports Bloomberg.

The India revenue jumped about 33 per cent in the 12 months through March from $6 billion a year earlier, according to a person familiar with the matter. Apple’s pricey iPhones accounted for more than half of the sales, said the person, who asked not to be named as the information isn’t public.

The increase signals steady progress in Apple’s effort to win users in the world’s most populous country, whose consumers are gradually gaining more purchasing power as the economy expands. The company is targeting India as a way to diversify its manufacturing and revenue sources beyond much larger market China, which has become riskier because of trade tensions with the US.

Apple doesn’t break out India revenue in its earnings statements, but it is required to report annual sales in the country to local authorities. Apple representatives in India didn’t respond to requests for comment.

The Indian market is dominated by cheaper Chinese devices using Google’s Android mobile operating system, and iPhones make up just about 3.5 per cent of the country’s roughly 690 million smartphones in use, according to Counterpoint Research. Even though India is one of Apple’s fastest-growing markets, the South Asian nation accounts for only about 2.0 per cent of its latest fiscal-year sales of $383 billion.

Chief Executive Officer Tim Cook is trying to change that. He visited India last year to open the country’s first two Apple Stores that sell iPhones, iPads, MacBook computers and other devices and accessories. India’s steadily expanding middle class, which views Apple products as status symbols, could gradually help the company cut its sales dependence on China.

Apple’s revenue in China shrank in the latest fiscal year to $72.6 billion as the economy cooled, though iPhone sales have rebounded strongly in recent months on heavy discounting by retailers. But tensions between the US and China have prompted the company and other global technology firms to pivot more toward India as the next growth market.