Apple Sets Quarterly Record in India as Tim Cook Deems it “An Incredibly Exciting Market”

• ByStartupStory     |    May 5, 2023

During the second-quarter earnings call, Apple CEO Tim Cook expressed his enthusiasm for India as an “incredibly exciting market,” following the company’s record-breaking quarterly revenue in the country. Apple experienced growth in various emerging markets, with India achieving an “all-time iPhone revenue record” and “very strong double digits year-over-year growth.” The company also exceeded expectations globally with its iPhone sales for the second quarter of the financial year ending April 1, 2023.

Apple’s net profit for the second quarter of the fiscal year was $24.2 billion, a decrease from $25 billion in the same period the previous year, while revenue dropped by 3% to $94.8 billion compared to $97.3 billion in the year-ago quarter. The company’s total operating expenses rose from $12.6 billion to $13.7 billion year-over-year. Apple CEO Tim Cook cited foreign exchange headwinds and challenges in the macroeconomic environment as factors affecting their Q2 performance.

Apple CEO Tim Cook emphasized India’s importance to the company, stating that it is a major focus. Cook described the Indian market as dynamic and vibrant, with the company expanding its operations to serve more customers over time. Apple recently opened its first two stores in the country, located in Mumbai and Delhi, which have had a “great start,” according to Cook.

Apple’s sales have been driven by its flagship smartphones, with iPhone revenue increasing from $50.6 billion to $51.3 billion in the second quarter compared to the previous year. Despite worldwide smartphone shipments declining by approximately 15% during the same period, Apple’s iPhone sales continued to increase, according to IDC estimates. This growth in sales suggests that some of the supply chain and shortage issues that had previously impacted Apple’s revenue-driving product have been resolved.

Although overall iPhone sales improved, Apple’s revenue from its products, including Mac and iPad, decreased by 5% to $73.9 billion from $77.5 billion in the previous year’s period, consistent with the company’s projections for both categories. Conversely, Apple’s services revenue reached a new all-time high of $20.9 billion during the quarter, increasing by 5.5% year-over-year. 

Apple CEO Tim Cook announced that the company had achieved all-time revenue records for its App Store, Apple Music, iCloud, and payment services, and its subscriber base had surpassed 975 million paid subscriptions, allowing the company to reach more people with its services lineup.

Apple’s Chief Financial Officer, Luca Maestri, has projected that the company’s year-over-year revenue performance for the June quarter will be similar to that of the previous quarter, with the caveat that the macroeconomic outlook does not worsen from their current projections. Foreign exchange will continue to be a headwind, causing a negative year-over-year impact of nearly 4 percentage points.

 Apple has not issued revenue guidance since 2020 due to uncertainty. The company’s shares rose nearly 2% in after-hours trading and continued to climb following the announcement that its board had authorised an additional $90 billion for share repurchases, solidifying its position as the largest US firm by market value.

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