Apple bets on India for sales of iPhone while it looks for new killer product.
Apple is betting on India's demographic for sales of its iPhone while it searches for that all new killer product.
Economic Times reports that Tim Cook is betting on India for the long term. Apple Inc, hit by slowing worldwide iPhone sales in its latest quarter, is hoping that the country's younger population, thirst for top-of-the-line consumer products and economic growth prospects will help pick up the slack as other markets falter. In its first-quarter earnings call, CEO Cook said Apple will continue to invest in India despite global slowdown and currency fluctuations.
"During hard times like now, it provides an opportunity to invest in newer markets such as India where there are long-term prospects," he said. Apple's financial year runs from October to September. The call took place early morning on Wednesday, India time. Apple's India first-quarter revenue surged 38%, albeit on a smaller base, compared with 11% growth in overall emerging markets and 14% in Greater China, its second-largest market after the US.
Cook said at constant currency rates, sales rose 48% from the year ago. "India is quickly becoming the fastest-growing BRIC nation, the third-largest smartphone market behind China and the US, and the median age of the population is 27 compared to 36-37 in China," Cook said. "The demographic is incredibly great for a consumer brand and people want best products. The government too is interested in economic reforms. All speaks for a really good future business environment."