From Harsh Chauhan's "1 Emerging Catalyst That Apple Investors May Have Missed" posted Wednesday:
CEO Tim Cook said on the latest earnings conference call that Apple witnessed "very strong double-digit growth in Brazil, Indonesia, and Vietnam." He also added that the company's revenue in India nearly doubled. That's something investors should take note of, as the Indian market presents a solid long-term growth opportunity for Apple. Here's why.
Canalys reports that smartphone shipments in India hit 36.4 million units in the second quarter of 2022, an increase of 12% over the prior-year period. That means Apple grew at a much faster pace in the Indian market last quarter.
Though the company didn't clarify its revenue from the Indian market, estimates suggest that Apple's revenue from its Indian operations was close to $3 billion in fiscal 2021. The tech giant's Indian revenue reportedly increased 68% last fiscal year. In fiscal 2022 analysts expect Apple's top line to increase another 31% in the Indian market, which would bring its revenue over there close to $4 billion.
While that looks like a small amount compared to Apple's projected revenue of $392 billion in fiscal 2022, the company's impressive growth in India at a time of high inflation means that consumers are willing to spend on iPhones. More specifically, the average selling price (ASP) of a smartphone in India stood at $211 in the first quarter of the calendar year.
Apple's entry-level iPhone SE is priced at 43,900 Indian rupees in that market, which translates into roughly $553 at the current exchange rate. So Apple seems to be enjoying solid pricing power in India... So the conditions are ripe for Apple to step on the gas in the Indian market, and the company is pulling the right strings to ensure that it doesn't miss out on the lucrative long-term opportunity present over there.
My take: The subcontinent is Apple's last big, game-changing phone market. BTW, the Motley Fool has gone nuts for Apple lately. Who decides when to do that, I wonder?