The chief executive officer of Apple, Tim Cook, has disclosed that prospects for growth in India remain bright as the technological pace at which the country is moving is rapid. In the latest quarterly results revenue generated from India, which is the third largest smartphone market in the world after the United States and China, grew by double digits.
Cook also expressed confidence that the returns from India would continue to be positive as the company had made huge investments and continues to do so in a bid to strengthen Apple’s in the country. Besides the demographics, Apple is betting on the increased rollout of 4G infrastructure in India to help boost its sales.
Local iPhone manufacturing
Some of the factors working in Apple’s favor in India include the fact that it will start manufacturing iPhones in India at a Bengaluru plant that is operated by Wistron, a manufacturer based in Taiwan. Apple has also received permission to put up a distribution center in Mumbai.
Cook’s remarks came amidst the release of 2017’s first quarter results where revenue estimates were met as $52.95 billion was generated with the consensus estimates having been $52.9 billion. The first quarter results for this year also had earnings per share exceeding estimates as it was $2.10 a share. This was 4% higher than the $2.02 that had been forecast.
Leaks harming sales
However, sales of the iPhone were lower than had been expected as the number of units sold was 50.8 million. Cook was of the opinion that the lower-than-expected sales were as a result of consumers holding off on buying new iPhones as they await the upcoming releases. According to Cook leaks may be to blame for this.
“We’re seeing what we believe to be a pause in purchases on iPhone, which we believe are the result of earlier and much more frequent reports of future iPhones,” Cook said.
Apple’s services business also continued to perform well as revenue from this segment rose by 18% from a similar quarter last year to reach a figure of $7.0 billion. This also beat the estimates as analysts had expected service revenues of approximately $6.78 billion. In the coming four years, Apple hopes to double the size of its service business.
Sales of Mac computers also rose marginally by 4% to hit 4.2 million units as the Cupertino, California-based tech giant prepares to revamp its line of desktop computers after a long period without major changes.