Tim Cook blames weak currency for flat iPhone sales in India

Apple reported higher revenue than expected, but India remains at the lowest in terms of market share.

Tim Cook is still bullish on India. (REUTERS)

Apple on Friday reported a strong September quarter, registering $62.9 billion in revenue. Even as the company saw record iPhone sales globally, India continued to be a low point. Following the publication of Q4 earnings report, Apple CEO Tim Cook addressed the company's dwindling position in India.

Cook blamed weak currency for snail paced growth in emerging markets like India. Like the previous quarter, Apple this time too had just 1% market share. Cook acknowledged the company's business in India this quarter was "flat."

He added that the company is under immense pressure in these emerging markets that have further led to increase in prices of its devices.

"In some cases, that resulted in us raising prices and those markets are not growing the way we would like to see," Cook said.

Cook further pointed out that the company's manufacturing of its entry-level iPhones "has gone well". Apple manufactures the iPhone SE and iPhone 6 in India which are one of its cheapest iPhones.

Apple CEO however remains positive on India's growing smartphone market describing the company's fall as "speed bumps" in a long journey. "I am a big believer in India. I am very bullish on the country and the people and our ability to do well there," Cook said.

Apple, however, still has no timeline on the launch of its retail stores in India.

"We've had really great productive discussions with the Indian government, and I fully expect that at some point, they will agree to allow us to bring our stores into the country. We've been in discussions with them, and the discussions are going quite well."

Cook's statements resonate what was said during the previous quarter's earnings call as well. This quarter too, India showed a positive growth in Apple's other devices like Macs and iPads.

Apple's Q4 revenue increased by 29% as compared to last year primarily due to the continuing sales of iPhone 8 series and iPhone X. Apple's anniversary edition iPhone X was also the best-selling iPhone last quarter. The same wasn't reflected in India with research analysts highlighting the expensive price tag of iPhone X.

Apple recently launched iPhone XS and XS Max which start at an even higher price in India. Apple iPhone XS starts at ₹99,900 for the base model, while the bigger iPhone XS Max crosses the 1 lakh margin. Apple's 'affordable' iPhone, the iPhone XR also has a rather high price tag of ₹76,900 in India.