Apple crosses $1 billion sales mark in India

MUMBAI | KOLKATA: Apple crossed the $1-billion sales mark in Indian operations for the first time in the year ended March, according to results filed with the Registrar of Companies (RoC) on Wednesday.

The maker of iPhones and iPads posted a 44 per cent increase in sales to Rs 6,472.89 crore from Rs 4500.35 crore and net profit doubled to Rs 242.85 crore from Rs 119.48 crore as the company widened its retail network and stepped up marketing efforts, including buyback schemes, installment programmes and discounts. The rupee traded at around 62-63 against the dollar in FY15. Apple has more than doubled sales in India in the last two years, having posted revenue of Rs 3,057.79 crore in FY13. Analysts attributed this to the surge in demand for iPhones with sales growing upwards of 35 per cent quarter-on-quarter in the last two years. As per the RoC filing, the parent didn’t take any dividend from India operations in FY15.

“With a view to conserving its financial resources, no dividend payout to the company’s shareholders has been recommended by the board of directors for the current year,” said the Apple India annual report. It said Apple Operations International owns 99 per cent of the Indian company and the rest by Apple Operations Europe. Apple changed its India strategy in 2011, having paid it little attention until then. The company expanded the India team four years ago and started introducing new models closer to their global launch dates.

In 2012, the company changed its sales model by appointing retail distributors and began advertising campaigns. Since then sales have been rising at double-digit pace and the top management has acknowledged the importance of Indian operations on analyst calls several times. Apple is the third-largest brand in the Indian cellphone market by sales with 9 per cent value share after market leaders Samsung and Micromax, market tracker Counterpoint Research said.