AAPL growth in India may be the bright spot in Q2 earnings

Dramatic AAPL growth in India may be the biggest bright spot in the company’s fiscal Q2 earnings report next month.

Apple is expected to announce that global revenue fell by around 5% year-on-year, but the company will reportedly share good news on India…

AAPL Q2 2023 expected to show falling revenue

Apple is due to reveal its fiscal Q2 earnings – covering the first quarter of the calendar year – on May 4.

There are three reasons we’re expecting the company to reveal an overall decline in global revenue, compared to the same quarter last year.

First, while Apple no longer offers specific earnings guidance for upcoming quarters, CEO Tim Cook said back in February that the company expects a “similar” picture to the previous quarter.

Second, iPhone assembler Foxconn reported a 21% revenue fall in March. We noted then that the company also works for other tech companies, so its fortunes are not exclusively tied to Apple, but the Cupertino company is believed to account for around half of its income.

Third, it was a similar picture with Apple chipmaker TSMC, with a 15% drop. The same disclaimer applies, but since TSMC is Apple’s exclusive chipmaker for its A-series and M-series chips, it’s a pretty safe bet to conclude that at least part of its falling sales reflects lower demand for Apple products.

AAPL growth in India

India, however, is expected to be an exception to the rule. Bloomberg reports that revenue from the key country has risen by almost 50% in the past year.

Apple Inc.’s sales in India hit a new high of almost $6 billion in the year through March, highlighting the market’s increasing importance for the iPhone maker as Chief Executive Officer Tim Cook arrives in the country to open its first local stores.

Revenue in India grew by nearly 50%, from $4.1 billion a year earlier, according to a person familiar with the matter, who asked not to be named as the information is not public.

Apple has a lot of room for growth in the country. While the bulk of smartphone sales to date have been budget models, that is gradually changing. Just a few years ago, the company’s market share in the world’s second most populous country was just 1%. Today, the iPhone represents around 4% of smartphone sales in the country, and a higher share of revenue.

Establishing Apple Stores in the country is a key part of the company’s growth plans, and this is finally happening. Today we saw photos of the gorgeous new Apple BLK store opening tomorrow in Mumbai, with a Delhi store opening just two days later.

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Naveen Kumar

Friendly communicator. Music maven. Explorer. Pop culture trailblazer. Social media practitioner.

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