Apple India Revenue Nears Rs 50,000 Crore In FY23

Apple's India entity posted a nearly 50% spike in revenue for FY23, taking its topline to about Rs 50,000 crore, while reporting a large growth in profit as well.

Apple India Pvt., registered in Bengaluru, posted a revenue of Rs 49,321.8 crore for FY23, up from Rs 33,381.3 crore in the previous fiscal.

The company's profit rose 76.4% year-on-year to Rs 2,229.6 crore in the period under review, according to data sourced from Tofler.

A majority of the company's revenue—about 94.6% — came from the sale of its devices, such as the iPhone, Mac and iPad. About 5.4% came from the maintenance services it provides via its insurance, Apple Care.

During FY23, Apple also declared an interim dividend of Rs 4,32,891 per share on 35,002 shares, amounting to over Rs 1,500 crore.

"The 'premiumification of market' has begun in the world’s second largest smartphone market and Apple as usual has got the timing right on to catalyse this trend in its favour through its broad iPhone portfolio and financing offers," according to Counterpoint Research's Tarun Pathak.

"As we analyze Apple's strategic approach, we observe the implementation of a comprehensive three-dimensional strategy, centered around key pillars of domestic manufacturing, distribution, and driving premiumisation. This multi-faceted approach reflects Apple's commitment to staying ahead in the market and catering to the evolving needs of consumers," he said.

Pathak added that India is home to over 85 crore mobile phone users and potential to have more than a billion smartphone users in next five years.

"Most of these users are upgrading to their second or third smartphones right now and being 'mobile first', consumers are spending and upgrading to better and more expensive smartphones. This gives a significant opportunity for Apple in terms of huge potential market outside China and USA in coming years," he said. "Further, Apple can cross sell other products such as Macs, Watch, AirPods, iPads and services to the growing iPhone user base maximising the revenue opportunity."

The iPhone maker has doubled down on India, both as a retail market and a manufacturing base. Up until FY23, it sold its products through its online store in India and a variety of indirect distribution channels, such as wholesalers and resellers. In April of this year, it opened two stores in New Delhi and Mumbai. Sales from these stores are not included in FY23 earnings.

Apple could also move at least 18% of its global iPhone production to India by FY25, according to BofA Securities Inc. "This is based on targets already committed by Apple’s contract manufacturing firms under the PLI scheme,” it said in a report.