Tech behemoth Apple announced its first quarter results on 1 Aug. ‘24. In an earnings call, CEO Tim Cook said the company earned USD 85.8 Bn in revenues during the three month period ending Jun. ‘24. This was a rise of 5% from the corresponding period during the previous financial year.
“Apple is reporting a new June quarter revenue record of $85.8 billion, up 5 percent from a year ago,” said Tim Cook.
During the quarter, we were excited to announce incredible updates to our software platforms at our Worldwide Developers Conference, including Apple Intelligence, a breakthrough personal intelligence system that puts powerful, private generative AI models at the core of iPhone, iPad, and Mac.
We very much look forward to sharing these tools with our users, and we continue to invest significantly in the innovations that will enrich our customers’ lives, while leading with the values that drive our work”, he added.
In two dozen markets, the company’s recorded highest ever quarterly revenues, he stated. Some of these countries include Indonesia, Phillipines, Thailand the UK, Canada, Mexico, France, Germany and India.
Apple’s flagship product, the iconic iPhone contributed almost 40% of its revenues, pegged at USD 39.3 Bn.
The highest growth in sales for a single category (during the first quarter) for Apple came from the iPad, which recorded a steep growth of 23.67% to USD 7.16 Bn.
This was due to a wide pricing range, with prices for the WiFi only model starting at INR 24,000 (USD 300) in markets like India.
The growth in iPad sales is further strengthened with the fact that many Apple diehards are either completely moving away from using Macbooks or, are using their iPad in place of the Mac, for its ease.
The iPad Pro models, for example, offer a complete suite of features and services that are prevalent in a Macbook, while being slimmer and easier to handle or carry, for those on the move at all times.
Sales from Mac – iMac desktops and Macbook computers rose 2% to USD 7 Bn.
Interestingly, the iPad Pro models costs more than the entry level Macbook in India.
June is also the month when several offers are unleashed, with the new academic year commencing for students across schools and colleges.
Deep discounts, upgrade and exchange offers are a big draw for the conservative yet aspirational Indian households.
India has been among the focus markets for Apple Inc. over the last few years, though the country still contributes no more than 1.5% of its total revenues. In contrast, China contributes approximately 20% of Apple’s worldwide revenues.
However, India is poised to be among the markets where Apple is said to be investing more money and executive time.
The two flagship stores of Apple at Mumbai and New Delhi are said to operate on an annual turnover of INR 220 Cr (USD 23 Mn).
By global standards, that isn’t much for a standalone Apple store, but for a standalone tech-retail store in India to reach such revenues is a feat by itself.
For comparison, a multi-category electronics retail store of TATA Croma in one of the best locations and with a wonderful trading density and over 20,000 SKUs, would be making around INR 30-40 Cr per annum.
Where Apple loses out in India is the comparitive landscape, especially in the mobile phones category, to Chinese OEMs such as Vivo, Oppo, Mi and RealMe.
These brands offer similar or somewhat better features at a fraction of price offered by Apple. Needless, youngsters prefer to use (and replace) Chinese models more often, than the users of Apple iPhones.
In July 2024, Apple’s longest partner HDFC Bank withdrew from its alliance.
During the last 5 years, the banker offered upto INR 5,000 in cash back when Apple products are bought using its credit card. For those choosing EMI options, the bank offered easy instalments to repay with interest rates ranging from 12-14%.
ICICI Bank, India’s third largest bank issuing most number of credit cards has now partnered with Apple to offer cash back on transactions as well as affordable EMIs to its users.