Apple sales crossed the $1 billion mark in India for the first time, according to results filed with the Registrar of Companies (RoC) on Wednesday. Apple, the maker of hugely popular devices such as iPads, iPhones and Macs, registered an impressive growth of 44% in sales on a yoy basis in the country.
Amazing success in Indian market
Analysts believe the surge is attributable to the growing popularity of the iPhones in India, which has resulted in sales rising by 35% on a quarter-over-quarter basis in the last two years. Widening of the retail network, and stepping upmarketing efforts that included buyback schemes, installment programs and discounts worked in the company’s favor whose profits doubled during the period.
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No dividend from Indian operations was taken by the parent in the financial year 2015, according to the RoC filing. In the last two years, Apple’s sales have gone up by more than 100% in India, says a report from the Times of India.
The U.S. firm in its Indian annual report, noted: “With a view to conserving its financial resources, no dividend payout to the company’s shareholders has been recommended by the board of directors for the current year.” It also noted that the 99% ownership of the Indian company rests with Apple Operations International and remaining 1% with Apple Operations Europe.
Counterpoint Research, a market tracker, noted that Apple accounts for 9% of the Indian smartphone market. It is the third-largest brand in the Indian smartphone market by sales after Samsung and Micromax.
What made the difference for Apple?
In 2011, the iPhone maker brought about a change in its strategy for the Indian market. Until then, it paid little attention to the market. Four years back, the company worked on expanding the India team, and new models were introduced in India closer to their global launch dates.
Apple also brought a change in its sales model in 2012 by appointing retail distributors and beginning advertising campaigns. This new sales model resulted in double digit sales growth. On several occasions, the company’s top management has acknowledged that Indian operations are very important for the company.
On Wednesday, Apple shares closed up 3.17% at $117.29. Year to date, the stock is up over 6%.