Apple optimistic of capturing the growing share of India's market
The Dollar Business Bureau
Apple CEO Tim Cook has expressed resounding optimism for growth prospects of the underpenetrated brand in India – the world's third-largest smartphone market.
"We’re very optimistic about our future in this remarkable country with its very large, young, and tech-savvy population, fast-growing economy, and improving 4G network infrastructure,” Cook said in the second quarter results earnings call yesterday.
Talking about India's investment in 4G infrastructure, Tim also said that growing 4G network in the country was a positive indication for Apple to concentrate more of its efforts in establishing a local presence.
“But they are moving fast. They’re moving at a speed that I have not seen in any other country in the world once they were started, and it is truly impressive,” he said, speaking of the fast-expanding 4G network.
Phil Schiller, Senior VP of worldwide marketing, Apple, was also bullish on Apple's future in the Indian market.
It so appears that Apple's confidence in India's potential to contribute to its growth was unmarred by India's recent indication of imposing a 10% - 20% duty on imported phones. Despite a lack of consensus on sourcing norms and taxation, Apple seems enthusiastic about working with the Indian government to enhance its revenues in India.
While Apple had sought duty-free import of components for the first 15 years of its operations in India, the government insists that the US tech major aligns itself with the Phased Manufacturing Plan – that aims to expand the share of locally produced components in phones to 50% in the next three years.
In a recent presentation of second quarter results made by Apple, CFO Luca Maestri stated that the company had achieved double-digit growth in most markets overseas – including Germany, Canada, Australia, Mexico, Turkey, Netherlands and Russia. By unleashing similar strategies in India, Apple hopes to replicate its success in other developing nations.
Announcing a revenue of $52.9 billion for the quarter ended April 30, 2017; the iPhone maker stated that 65% of its revenues were sourced from foreign markets. Although the number of iPhones sold during the quarter declined by 1% yoy from 51.19 million to 50.76 million, the revenues have shown an upward trend.