Apple’s revenue dips for the first time in India — falls by 10%

Oct 31, 2019, 09:09 IST

Apple’s revenue fell by over 10% in India — a first for the company.
Its revenue also took a massive hit of 70%.
The coming year holds more hope as Apple plans to launch its retail and online stores in the country.

Ever since Apple launched in India in 2008, it has been on an upward trajectory since — despite the company’s many troubles in the country.

But in 2019, for the very first time, Apple India’s revenue took a hit. Its revenue nosedived by over 10% from ₹13,049 crore during 2017-18 to ₹10,548 in 2019, according to regulatory filings by Apple to the Registrar of Companies.

Even the company’s profit in the country took a massive hit of 70%. From a staggering ₹896.3 crore last year — when it set a new record in India — its profits dipped to ₹262.27 crore this year. This is its worst performance since 2016.

But in 2019, for the very first time, Apple India’s revenue took a hit. Its revenue nosedived by over 10% from ₹13,049 crore during 2017-18 to ₹10,548 in 2019, according to regulatory filings by Apple to the Registrar of Companies.

Troubled waters

India has always been a difficult market for Apple to crack. Consumers in India are price conscious and Apple’s phones are only getting more expensive. It doesn’t help that Chinese smartphone manufacturers like Xiaomi and OnePlus heightened competition by offering high-end specs at cheaper prices.

Apple isn’t entirely innocent either. The company depended on the Indian government to soften its regulation on allowing foreign companies set up shop if they source 30% of their materials locally — which didn’t happen. Not only did this make the iPhones costlier, it also meant that Apple didn’t have any physical stores in the country.

While Apple waited, OnePlus and Xiaomi entered the market with their aggressive pricing and promise of flagship phones on affordable devices. In fact, OnePlus has the largest market share in India’s premium smartphone market, according to Counterpoint.

This year, in particular, was tough on companies with the global slowdown in smartphone sales to which Apple was not immune. India’s weakening Rupee, which made imports more expensive, only made the situation worse.

Apple’s delay in adding new features to its phones and taking its time to catch up to tech trends has also dulled the excitement that usually used to surround the launch of a new iPhone. In comparison, the constant launch of Android phones and the variety of their features has begun to seem more appealing to users.

Brighter pastures ahead

The government didn’t relax its rules for Apple but did so for single brand retailers at large. Either way, it now means that the company can open its signature ‘Apple Stores’ in the country. Reportedly, the first one is scheduled to come up at the BKC Complex in Mumbai sometime next year.

Also, Apple is finally among the top ten smartphone brands in the country. According to Counterpoint, this is due to the price cuts on the iPhone XR and demand for the newly launched iPhone 11.

Apple is also rumoured to launch more of its global initiatives in India in the near-future like its payments service, Apple Pay. Hopefully, they would correct the unfortunate course that their India business has already taken.

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