- The company’s revenue from operations fell 19 per cent while profit dropped more than 70 per cent
- Analysts expect both revenue and profit to bounce back in the current fiscal due to attractive pricing of new models
According to a recent report by ET, Apple India’s income and web revenue fell for the first time in the financial year 2019.
Some analysts told the news daily that a weakening rupee and higher import duties attributed majorly to this slowdown. As per the regulatory filings made to the Registrar of Corporations (RoC), the company’s revenue from operations fell 19 per cent while profit dropped more than 70 per cent.
Mohit Yadav, the founder of business intelligence platform Veratech Intelligence, told ET that following the global trend, Apple India’s revenue has declined by 19 per cent last fiscal in contrast to its gain of 19 per cent in FY18.
Turn around on cards?
Counterpoint Research associate director Tarun Pathak told ET that Apple India’s financials will turn around in FY20 due to attractive pricing of iPhone 11, adding more premium phones to local assembling enabling 20 per cent savings in taxes and buoyant demand for older yet pricier models like iPhone XR.
He further stated that Apple has got all the ingredients right for a turnaround in India this fiscal. Some analysts also expect both revenue and profit to bounce back in the current fiscal with the company growing sales of iPhones led by price cuts and lower pricing for the new models.