According to its latest regulatory filings with the Registrar of Companies (RoC), Apple’s net profits in India rose 44 percent during the year ended March 2017. Revenue growth, however, slowed down significantly on the face of increasing competition from not only Samsung but also a number of Chinese brands, such as Xiaomi, Vivo, Oppo and OnePlus, among others.
Apple’s total income in the country grew 17 percent during FY2017 to hit Rs. 11,704.5 crore, which is an increase from Rs 9,997.6 crore during the previous fiscal. The company in the RoC filing said that its income and profits are both ‘increasing at a consistent pace’.
According to analysts, Apple’s growth trajectory during FY17-18 will remain muted because of stiff competition from various quarters, but most notably, from Chinese brand One-Plus, which has gained significant traction in the country over the past few years. Referring to the iPhone X and its lackluster sales in recent months, Counterpoint’s associate director, Tarun Pathak said, “The financial performance for Apple India in the last fiscal will not be much different with one of the highest profitable models in the portfolio”.
While Apple’s iPhone X was the highest-selling smartphone model during the Holiday quarter, sales have since slowed down to a trickle, reportedly forcing Apple to cut back on its production. The company has also relinquished its leadership position in the premium segment in India during the past quarter, with Samsung climbing back to grab pole position with around 50 percent share of the premium market in the country. OnePlus is believed to have been in the second place with one-fourth share of the premium market.