In a significant financial milestone, Apple India has reported a substantial surge of nearly 5% of its revenue for the fiscal year 2023, catapulting its total earnings to approximately Rs 50,000 crore. The profit margins have also witnessed substantial growth in this period.
Apple India Pvt., headquartered in Bengaluru, has successfully recorded revenue figures of Rs 49,321.8 crore for FY23, up significantly from the previous fiscal’s Rs 33,381.3 crore.
The company’s profit margin saw a remarkable 76.4 percent year-on-year increase, amounting to Rs 2,229.6 crore during the fiscal year under review, as reported by data obtained from Tofler.
The vast majority of Apple India Pvt.’s revenue, approximately 94.6 percent, stemmed from selling its iconic devices, including the iPhone, Mac, and iPad. The remaining 5.4 percent was generated through maintenance services via its Apple Care insurance program.
This impressive surge in revenue and profits can be attributed to several factors, as experts have noted. A substantial portion of the revenue growth comes from the increased sales of new-generation devices, which offer more favorable profit margins.
Moreover, cost reductions in components during the last fiscal year have contributed to the financial success, according to analysts quoted by the Economic Times.
At the beginning of 2023, Union Minister Piyush Goyal disclosed Apple Inc.’s ambitious goal for India to account for approximately 25 percent of its total production, marking a significant rise from the current 5-7 percent contribution.
In April, Apple achieved record-breaking sales of nearly $6 billion in India for the year ending in March, underscoring the growing significance of the Indian market for the US-based tech giant.
The Economic Times quoted Mohit Yadav, founder of AltInfo, a business intelligence firm, who hailed Apple’s impressive financial prudence, emphasizing the remarkable increases in both revenue and profits, which indicate the company’s potential for limitless growth.
As revealed in documents filed with the RoC, a substantial 94.6 percent. Apple India’s revenue is derived from product sales, while a smaller 5.4 percent is attributed to maintenance and services. Remarkably, Apple has yet to expand its services business in India, despite it constituting approximately 30 percent of its global sales.
The regulatory filings also unveil that Apple India’s foreign exchange outflows for the import of stock in trade, spare parts, and capital goods have not diminished in FY23, despite the company’s concerted efforts to scale up local assembly.
