Apple’s India push appears to drive dividends as the smartphone company recorded a 77 per cent increase in net profit to ₹2,230 crore in FY23, versus ₹ 1,263 crore accrued in FY22. This is according to the financial results for the fiscal year ending March 2023, provided by intelligence firm Tofler. 

The popular iPhone maker’s India’ revenue rose by 48 percent from the previous year to reach a total of ₹ 49,322 crore in FY23 (versus ₹ 33,381 crore in FY22). 

This substantial increase in profits and revenues is to be expected. India becomes a prominent country for the China+1 strategy being adopted by many global tech firms. 

Sales-driven Growth

Moreover, despite charging a higher markup for iPhones in India, which continue to remain a luxury device in the India market – the demand for iPhones has soared in recent years prompting Apple to open retail outlets in Mumbai and Delhi this year. 

Apple dominates the luxury phone market in India, holding 63 per cent market share in this category. It also holds a 6 per cent market share in the overall smartphone segment, a number which is only expected to grow over the years. 

To support its revenue growth, the company made significant investments in various areas, thereby increasing its total expenses. Tofler reported that Apple India’s total expenses for FY’23 were recorded at Rs 46,444 crore, marking a notable increase compared to the ₹ 31,693 crore spent in FY’22.

Apple wants to move more than 18 per cent of its global iPhone production to India by 2025. At present, 7 per cent of iPhones made worldwide are made in India.