Apple shifts focus to India for further growth

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Apple

Highlights

  • Apple posted record revenue in India last quarter, even as its total sales fell 5 per cent.
  • The long-term benefits of a shift to India could include the rollout of services not available like Fitness+ and Wallet in India, job creation, and a reduction in the price of specific goods.

Apple is turning its attention towards India by reorganizing the management of its international businesses. The shift in focus may result in "India becoming its own sales region at Apple." The company is also elevating Apple India's managing director, Ashish Chowdhary, to oversee the India, Middle East, Mediterranean, Eastern Europe and Africa regions.

The position was previously held by the recently retired Hugues Asseman. Chowdhary will report directly to Michael Fenger, Apple's head of product sales. Although the exact benefits of a change in India are not highlighted, long-term benefits could include the rollout of services not available like Fitness+ and Wallet in India, job creation, and reduction in the price of specific products.

The report notes that the latest changes will affect Apple's management structure but not how it reports regional sales in public financial results. Apple reports its results in four parts, and the India figures are part of its Europe category, along with Africa and the Middle East. Other markets include Greater China, the Americas, Japan, and the rest of Asia Pacific.

Apple's growing importance to India was also highlighted by Apple CEO Tim Cook on the latest earnings call. He said: "India is a hugely exciting market for us and is a major focus" for Apple, adding that "we're putting a lot of emphasis on the market." In the latest quarter, Africa, India, the Middle East and Europe were key markets for Apple, while the company's overall sales fell 5 per cent. Apple said in the last quarter; it witnessed an all-time record for iPhone sales in India without disclosing specific numbers or best-selling models.

Apple is expanding offline events in India to promote iPads. In February, Apple hosted its first physical Today at Apple session in New Delhi. At Apple is an educational program where Apple collaborates with creators to teach users how to use iPads and iPhones to generate professional-looking content. The program is usually held at Apple's official retail stores, which have yet to open in India. Last month, the show was held at the India Art Fair in Delhi.

Apple India's official website shows that the firm plans to open its first Apple Stores in Delhi and Mumbai this year. Apple is also hiring store managers and representatives for these locations. Later, Apple may expand its stores in India.

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