Apple India revenue hit an all-time high in the September quarter, the company said, even as the wider India phone market shrank. The result came inside a global record quarter for Apple, with revenue of $114.5 billion, up 12 percent from a year earlier. Apple does not publish India sales figures, so the India record was reported without a rupee or dollar number. The September quarter result stands in contrast to shipment data for the same period, which showed a sharp fall in India phone shipments.
Apple India revenue record in a weak market
India phone shipments fell 20 percent in the July to September quarter to a decade low, according to Counterpoint data reported by StartupFeed. Apple’s share of those shipments slipped to 8 percent from 9 percent. The fall in shipments and the record revenue can both be true at once, since revenue depends on the mix of products sold and their prices, not only on the number of units shipped. Higher priced models, services and other products can lift revenue even when unit sales fall.
Record memory chip prices pushed device costs up across the industry, which added pressure on phone makers and buyers alike. Memory is a key part of every phone, and when chip prices rise, makers either absorb the cost or pass it on in prices. For Apple India, the September quarter combined that cost pressure with a market in which fewer phones were shipped overall. The company still reported record revenue in India, a result that points to the value of its product mix rather than to growth in unit volumes.
Shipments and revenue measure different things, and the Apple India result shows why both matter. Shipments count units, while revenue counts value, and the two can move in opposite directions when buyers choose higher priced models or when services add to sales. Apple India revenue hit a record even as shipments fell, which fits a pattern where the value of what was sold rose while unit numbers dropped. Record memory chip prices also pushed device costs up across the market, which can lift average prices even when fewer phones change hands.
Apple India and the Apple Pay launch
Apple Pay went live in India with Axis Bank during the period, the first payments tie-up for Apple in the country. The launch gives iPhone users in India a way to pay through Apple’s wallet, and it ties the company more closely to the Indian banking system. Axis Bank is the partner for the launch, and the tie-up marks Apple’s first payments partnership in India. Payments are a part of Apple’s services business, which sits alongside hardware sales and has grown in importance for the company.
The Apple Pay launch also fits a wider pattern for Apple India, where services and the installed base of devices matter as much as new phone sales. A user who already owns an iPhone can adopt Apple Pay without buying a new device, and that adoption adds to services revenue. For Axis Bank, the tie-up brings its cards into Apple’s wallet and into the daily spending of iPhone users. The launch was reported alongside the September quarter results.
Apple India outlook for the December quarter
Apple guided to revenue growth of 7 to 10 percent for the December quarter, a forecast that covers the company as a whole rather than India alone. The December quarter is usually Apple’s strongest, since it includes the festive and holiday buying season in many markets. In India, the quarter follows the festive season, when phone buying tends to rise. The guidance gives a range rather than a single number, and it reflects the company’s view of demand, costs and supply for the months ahead.
The September quarter therefore leaves Apple India with two stories running side by side. Revenue hit an all-time high, while shipments fell 20 percent to a decade low and Apple’s share slipped to 8 percent from 9 percent. Record memory chip prices added to device costs, and Apple Pay went live with Axis Bank as the company’s first payments tie-up in India. The December quarter guidance of 7 to 10 percent revenue growth will show whether the revenue record can be repeated in a market where fewer phones are being shipped.