Tim Cook announced that iPhones generated $26 billion (roughly Rs. 1,80,000 crores) in revenue in the company’s third quarter – down 12 percent from last year’s June quarter – India witnessed a 19 percent growth (year-on-year) in shipments riding on promotional offers and discounts from the Cupertino-based giant. Apple iPhone shipments fell11 percent in the quarter globally but in India, they grew 19 percent (YoY), according to Counterpoint Research.
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“We are encouraged by the results we are seeing from the initiatives that we spoke about in January including strong customer response to our in-store trade-in and financing programmes,’ said cook during an earnings call with analysts late Tuesday. In fact, said Cook, the retail and online stores returned to growth on a year-over-year basis in the month of June, adding that the iPhone performance in Q3 showed a significant improvement from 17 percent (year-over-year) revenue decline in Q2.
This was the third consecutive quarter of a decline in Apple iPhone shipments. To ramp up sales, Apple implemented price cuts for the iPhone XR in India and China markets. “Amid the slowdown in China and likely launch of 5G capable iPhone in 2020, Apple will have to concentrate its efforts on emerging markets,’ Counterpoint noted. Apple has announced the acquisition of chip-maker Intel’s smartphone modem business for $1 billion.
Thousands of Apple employees are now using Apple Card every day in a beta test, and Apple plans to begin the roll out of Apple Card in August.
“We had great results for Apple Watch, which set a new June quarter revenue record and is reaching millions of new users. Over 75 percent of customers buying Apple Watch in the June quarter were buying their first watch” said Cook.
Apple also saw phenomenal demand for Airpods. “When you tally up the last four quarters, our wearables business is now bigger than 60 percent of the companies in the Fortune 500,” said the company. Cook said that the company had great performance from iPad, with revenue of over $5 billion, driven by iPad Pro and by strong customer response to the new iPad Mini and iPad Air. “We were also very happy with double-digit revenue growth from Mac, fueled by a strong performance of MacBook Air and MacBook Pro,” said the Apple CEO, adding that Mac pro production will remain in the US contrary to media reports that Apple is considering shifting Mac Pro production to China.
Conclusion: The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.
