Why is Apple producing iPhones in India? Tim Cook explains 'double-digit' growth - Hindustan Times

Why is Apple producing iPhones in India? Tim Cook explains 'double-digit' growth

May 04, 2024 11:52 AM IST

Apple's sales dip less than expected last quarter despite China's iPhone demand drop. India sees significant growth, giving hope for easing slowdown.

Apple's sales dipped less than anticipated last quarter despite a drop in iPhone demand in China. However, there was a notable "double-digit" surge in India. This has given hope that the company's slowdown might be easing up.

Apple CEO Tim Cook (Photo by BAY ISMOYO / AFP)
Apple CEO Tim Cook (Photo by BAY ISMOYO / AFP)

Apple chief Tim Cook expressed satisfaction with “strong double-digit growth” in revenue for the March quarter in India, marking a “new record” for Apple. He said Apple is manufacturing iPhones in India to stay competitive.

“In terms of the operational or supply chain side, we are producing there. From a pragmatic point of view, you need to produce there to be competitive, and so, yes, the two things are linked from that point of view, but we have both operational things going on, and we have go-to-market and initiatives going on,” Cook said.

Apple's quarterly growth

Apple reported a 4.3 per cent decline in revenue to $90.8 billion for the fiscal second quarter, surpassing the average analyst estimate of $90.3 billion. Profit also exceeded Wall Street projections.

Additionally, the company approved a record-breaking $110 billion share repurchase, marking the most significant buyback authorisation by a U.S. company, according to EPFR analyst Winston Chua.

ALSO READ- Apple stock rallies over upbeat forecast, record-setting stock buyback

‘Incredibly exciting market’: Tim Cook on India

“I see it as an incredibly exciting market, and it’s a major focus for us,” Cook said. Cook highlighted new stores opening for the “go-to-market” and said, “We see enormous opportunity there”.

He also mentioned efforts to expand channels and develop the developer ecosystem, expressing enthusiasm for the region's overall progress.

ALSO READ- Tim Cook says he is 'very, very pleased' about how Apple is doing in India

Apple stocks see a surge

Apple shares surged 7 per cent on Friday following the announcement of the company's ambitious stock buyback plan and optimistic sales outlook, attracting investors who had previously been cautious due to concerns about weak demand and heightened competition in China.

The increase in stock value added nearly $200 billion to Apple's market capitalisation, pushing it to $2.86 trillion. This makes it the second most valuable company after Microsoft, which is worth $3 trillion.

At Friday's stock price, utilising Apple's entire buyback authorisation would entail repurchasing nearly 4 per cent of the company's shares.

ALSO READ- Apple announces $110 billion stock buyback, biggest in history

‘Some very exciting things’: Tim Cook on Apple's 'Let Loose' event

Apple's optimistic forecast indicates confidence that forthcoming product updates, starting with an iPad event scheduled for May 7, will stimulate demand in its hardware business after a period of sluggish growth.

CEO Cook teased that Apple has "some very exciting things" in store, fueling anticipation among analysts who speculate that the company might unveil AI integrations at its upcoming annual developer conference, projected to be its largest ever.

(Inputs from Reuters)

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