Apple India has registered a net profit of Rs 926.2 crore in FY20, registering a 267% growth, as compared to Rs 262.27 crore in the preceding fiscal. The US-based tech giant recorded Rs 13,756 crore revenue in India in FY20, a 29% YoY jump from Rs 10,674 crore registered in FY19.
With these figures, it is evident that Apple India is recording a V-shaped recovery. The American consumer technology firm struggled to grow its iPhone sales during 2018. However, the company has been finally able to turn around its India business and managed to grow its revenue and net profits at an impressive rate during 2019-20.
This sharp rebound in Apple India’s balance sheets in FY20 came after the company’s revenue and profit nosedived in FY19. Apple India’s operating revenue dropped by 19.2% YoY from Rs 13,049 crore in FY18. On the other hand, net profit of the tech firm had plunged by 71% from Rs 896.3 crore. At the end of the last financial year, Apple India’s total assets increased to Rs 7,113 crore, 44.5% higher as compared to March 2019, its highest ever recorded.
In the second quarter (July-September) 2019, Apple India recorded its highest-ever sales. Also, the company registered a high double-digit sales growth in the Q3 of 2019, boosted by the high festive season demand. In fact, Apple was one of the fastest growing smartphone brands in 2019.
The industry experts point towards the strategy change of the company behind this success. With its revised India strategy the company has reduced the gap between global and India launch dates for its products. Besides that, Apple India has also streamlined its product pricing and increased the distribution of its products through tie-ups with companies like Reliance Jio.
Local manufacturing of new-generation iPhone models, in the line with make-in-India campaign, too has helped Apple India to boost its fortune. The tech firm, along with its Taiwanese contract manufacturer Wistron is manufacturing the iPhone 12 Series in India. Apple India has reduced the launch price of iPhone 11 series by more than 15% to 64,500 in 2019, which is the lowest in several years. The company has been able to bring down prices of its iPhone XR since mid 2019, thanks to the local manufacturing in India.