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Why Is Apple Optimistic about Revenue Growth in India?

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Smartphone market rose 20% in 3Q16

In 3Q16, India’s (INDA) smartphone market grew 20% YoY (year-over-year) to over 30 million units, according to a research report by Canalys. Samsung (SSNLF) continued to lead India’s smartphone market despite issues with the Galaxy Note 7. Samsung currently accounts for over 20% of the smartphone market in India.

Due to a fall in shipments from domestic players such as Micromax, Intex Technologies, and Lava, Lenovo (LNVGY) was the second-largest manufacturer in India, trailing Samsung. China’s Xiaomi, the fourth-largest manufacturer in India, more than doubled its unit shipments between 2Q15 and 2Q16.

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iPhone sales in India rise 50% in fiscal 2016

In Apple’s (AAPL) fiscal 4Q16 earnings call, Tim Cook stated that India’s iPhone sales rose 50% YoY in fiscal 2016, and that he is optimistic about the country’s growing market opportunity. Apple has partnered with India’s telecom provider, Reliance Jio Infocomm. Jio is rolling out 4G (fourth generation) LTE (long-term evolution) networks in 18,000 cities and 200,000 villages in India. It is also offering a free year of service to customers who have purchased new iPhones. Other markets where Apple experienced strong iPhone growth in fiscal 4Q16 include Latin America, Canada, South Asia, the Middle East, and Western, Eastern, and Central Europe.

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