Apple Reports Record Revenue in India Despite Slowing Global Sales

Apple today reported financial results for its fiscal fourth quarter ended September 30, 2023, marking the company's first year-over-year revenue decline in nearly two decades, but hitting new highs in India.

The tech giant posted quarterly revenue of $89.5 billion, down 1% from last year. Profits were up, with quarterly earnings per share increasing 13% to $1.46. This represents Apple's fourth consecutive quarter of slowing sales growth and its longest downturn since 2001. However, the decline in overall revenue underscores the challenges Apple is facing in China and with sluggish Mac sales.

While iPhone sales drove much of Apple's growth, setting a new September quarter record of $43.8 billion in revenue, the India market stood out.

Apple achieved an all-time revenue record in India during the quarter, with CEO Tim Cook noting on the earnings call that revenue grew by a solid double-digit percentage. "It's an incredibly exciting market for us and a major focus of ours," he remarked.

The strong India results come as Apple has been making concerted efforts in the country. Earlier this year, Apple opened its first physical retail stores in the country and also spearheaded online sales.

Cook also hinted at future growth opportunities, noting India's massive population with a relatively low iPhone market share and a fast-growing middle class. "We have a low share in a large market, and so it would seem there's a lot of headroom there," he said.

While India fueled new records, Apple saw iPhone sales growth globally as well. The iPhone posted quarterly revenue of $43.8 billion, up 3% and an all-time record for the September quarter. Cook cited strong iPhone performance in several markets, including Canada, Latin America, the Middle East, and South Asia.

Apple updated its flagship iPhone line in September with the release of the iPhone 15 series. But the new smartphones were only on sale for the final eight days of the quarter, meaning their impact will be more evident in the holiday quarter results.

The sales of Apple's wearables, home and accessories division dropped compared to a year ago, hinting at slowing demand. Similarly, the Mac revenue was down 34% year-over-year due to challenging market conditions and supply disruptions.

"While overall smartphone shipments are likely to decline by 5 percent in 2023, Apple will grow by 38 percent in India," said Tarun Pathak, Research Director at Counterpoint.

India's growing importance as a prime revenue growth driver for Apple is evident from the latest earnings call amid slowing sales in mature markets like the US and Europe. As the country's consumer class expands, Apple is positioned to capitalize on its brand power and ecosystem of products.