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Plenty of Positives for India During Apple's Quarterly Results Call

Earlier this month, Apple announced its financial results for the year’s first sales quarter. Tim Cook noted that while global iPhone sales were marginally down, the company had a lot to celebrate for its successful performance in India. The future of Apple India seems bright with 4G network gaining a large foothold in the country. There is a lot to look forward to from the company as they are also planning to set up Apple-owned stores.    

The CEO of Apple quoted on the earning call by saying, “We set a new March quarter record for India, where revenue grew by strong double digits". He further added, “We continued to strengthen our local presence across the entire ecosystem, and we're very optimistic about our future in this remarkable country with its vast, young, and tech-savvy population, fast-growing economy, and improving 4G network infrastructure."

According to the company’s Senior Vice President and Chief Financial Officer, Luca Maestri, the quarterly revenue of Apple India, among a few others across the globe, grew by over 20%. It must be noted that Apple doesn't report a dollar figure against income from individual countries other than Japan and Greater China.

The growth in revenue of Apple in India, however, doesn’t come as a surprise to industry experts because of the company’s aggressive marketing through its retail partners. Apple products are being pushed into the Indian market with lots of discounts and cashback offers especially on older iPhone models. More recently, the iPhone 7 and iPhone 7 Plus has also been made available at reduced prices. 

India is the third largest smartphone market in the world today behind China and the US. Cook linked Apple’s prospect in India to the expansion of the 4G networks while calling the country’s 4G roll out “truly impressive”.

He says, “We believe, particularly now that the 4G infrastructure is going in the country and is continuing to be expanded, that there is a huge opportunity for Apple there,"

"The 4G network investment began rolling in in a significant way toward the last quarter of last year, as you know. 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," Cook added.

Tim Cook was questioned if the California-based company is under-penetrated in India and if it needs to work with the government to have Apple-owned stores or production given the great opportunity in the country.

In reply to that, he said, "We think it's a great opportunity too, and so we're bringing all the things that we brought to bear in other markets that we've eventually done well in, and that's from channel to stores to our ecosystem and so forth," he said.

The CEO visited India last year and met Prime Minister Narendra Modi, mentioned that the company is putting a "lot of energy" in India, just like Apple has in other geographies that eventually wound up producing more.

"So I'm very excited about it," he said

The company has been achieving double-digit growth in the US, Canada, Australia, Germany, Turkey, Netherlands, Russia and Mexico as told by Apple’s Senior VP and CFO, Luca Maestri.

The growth rate soared over 20% in other markets that include: Brazil, Scandinavia, the Middle East, Central and Eastern Europe, India, Korea and Thailand, Maestri said, Maestri said.

A revenue of USD 52.9 billion for the fiscal 2017 second quarter that ended on April 1st was posted by Apple. Which is a substantial increase from the previous year of USD 50.6 billion.

The International sales of Apple devices accounted for a 65% of the quarter’s revenue. The net income has also increased from USD 10 billion to USD 11 billion compared to a year ago. 

However, Apple said that the number of iPhones sold globally fell by 1% in the first calendar quarter, as compared with the same period a year ago.

The total sale of iPhones is 50.76 million in the fiscal second quarter which is a down from 51.19 million a year earlier.

So, at this point, it is a wise decision to be investing in a growing market such as India. We as Indians also have a lot to look forward to from the company that has some grand plans for expansion in the country. Soon you will be able to purchase iPhones from Apple-owned online and offline stores with authentic user experience and after-sale services. 
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