Apple India Generated 10X Profit Than The Combined Profit of Xiaomi, Oppo And Vivo In FY 2017!

Must Read

Windfall! Online Grocery Market In India Looks Set For Purple Patch Ahead

Silver linings are clearly in short supply in the pandemic fuelled world that we have come to...

Apple Store In India: More Of Disappointment Than Excitement?

Apple has started making moves to strengthen its presence in India. With the launch of Apple online...

Facebook’s Chasm Of Distrust: An Ever-Deepening Divide

Facebook, the world's most popular social media platform has failed measurably as it is voted as the...

The status of Apple Inc. (NASDAQ:AAPL) in world’s second-largest smartphone market is casting vivid impressions. Despite facing stiff competition from the Chinese players in Indian smartphone market, Apple grew its net profit in the country by 44% at Rs 373.4 crore for the year ended March 2017, according to the company’s latest regulatory filings made to Registrar of Companies (RoC). As per Economic Times reports, the company’s total income in India surged by 17% to Rs. 11,704.5 crore in FY 2017, up from Rs 9,997.6 crore in the previous fiscal.

However, Apple’s overall sales growth has dropped significantly from over 40%, as reported for the past 5 years. This was due to the strong dominance exhibited by the Chinese makers including Xiaomi, Oppo and Vivo who are known for their competitively priced high-specced devices. Apple also lost its top spot to Samsung in India’s premium smartphone segment in Q1 2018, putting it behind the Korean giant and Chinese maker OnePlus. This was caused due to a drop of 55% in volume due to decline in shipments of its latest flagship device iPhone X and iPhone 8.

Increasing profitability amid declining sales is a direct reflection of the high-profit margin of Apple products and the rise in the average selling price (ASP) of smartphones. The ASP of smartphones has gone up by 19% YoY for the second consecutive year, indicating a change in buying trends as more Indian customers are now opting for higher priced phones. Also, the customs duty on phones has been hiked to 20% which will raise the price of iPhones in India.

Advertisements

Despite the declining iPhone X sales, Apple dominates the industry with 86% share of the total global handset profit in Q4 2017. Surprisingly, iPhone X alone accounted for 35% of the total handset industry profits during the same quarter.

Apple started manufacturing iPhones in India last year, aligning with the Make In India initiative, and it has helped the tech giant to meet local sourcing requirements. Apple’s strategy for India is starting to pay off and will become evidently clear in future as analysts believe that Apple’s growth will continue in the country in 2017-18 owing to highly profitable models in its portfolio. Also, the sales trend is gonna continue in almost same fashion as India’s sales growth will be comparatively low in 2017-18 due to fierce competition from OnePlus and Samsung who are currently dominating in the premium smartphone segment.

In the just-concluded fiscal, the share of Chinese brands in India has spiked to 57% of the total smartphone market in Q1 2018, up from 53% year ago, as per Counterpoint Research. The premium segment market accounts for only 4% of the total Indian smartphone market, and moreover, Apple is still popular among a small fragment of country’s 1.35 billion populace. Apple accounts for only 2.5% of India’s overall smartphone market.

The Silicon Valley giant is pushing its FY17 profit to its India endeavours, with an aggregate surplus of Rs 1556.5 crore. Surprisingly, it is about ten times the annual profits of Xiaomi, Oppo and Vivo, collectively generated in FY 2017. Though Xiaomi was the only profitable company in India, which generated a net profit of Rs 163.9 crore in FY 2017. The investment will be used for further expansion of local operations.

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Advertisements

Latest News

₹90 Crore Per Hour: That’s What Mukesh Ambani Added To His Wealth During COVID Era

Today the "IIFL Wealth Hurun India Rich List 2020" was released and guess who kept maintained his...

Can Tata Super App, With the Backing of Walmart, Take On JioMart?

In August, Tata Group, in a move to likely counter the offerings of the Jio umbrella, declared that they are in the...

The Raining Discounts Are Coming As Flipkart And Amazon Gears Up For Festive Season Sale

The festival season is about to begin and eCommerce majors in India Amazon and Flipkart are aiming to make the most of...

Amazon, Google And Microsoft Are Extreme Angry With TRAI

The big three of the tech industry - Amazon, Microsoft And Google - seems to be quite annoyed. Cloud...

New Android Malware Steals Your Banking Credentials And Let Hackers Access Your Smartphone

If you are an active user of banking apps on your Android smartphone, you must pay close attention to it.

An IT Service Help Desk Is Essential To Drive Business Growth

There's no debate about the fact that an IT service desk, when properly run, leads to both short-term and long-term business growth....

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This