Apple Reinforces Emerging Markets Focus on Earnings Call; Gurman weighs…

Apple Reinforces Emerging Markets Focus on Earnings Call; Gurman weighs…


apple inc AAPL last week reported fiscal second quarter results that beat forecasts. A message that caught the eye during the Corporate management’s earnings call was a focus on “emerging markets.”

What happened: While Apple CEO Tim cook‘s focus on emerging markets was not surprising, the number of times the topic was raised during the conference call was higher than expected, according to a Bloomberg columnist Markus Gurman said in its weekly “Power On” newsletter.

India alone was mentioned about 20 times in the call, Gurman noted.

The iPhone’s resurgence during the quarter was fueled by emerging markets in South Asia, the Middle East and Latin America, Gurman said, citing Apple’s CFO Luca Maestri.

In Apple’s more established markets, however, sales fell in the Americas, Japan and China, contributing to an overall sales decline of about 3%, the columnist said.

“Apple’s message is that there is still plenty of room to expand in these newer markets and add customers to its platform,” Gurman said. He noted that during the conference call, Maestri mentioned that in regions where Apple’s market share is small, the company tends to add many new customers to its ecosystem.

Gurman also pointed out that Cook had said India is at a “tipping point” where many people could enter the middle class and be persuaded to buy iPhones.

See also: Everything you should know about Apple stock

Super cheap iPhones off the radar: Apple CEO’s comments on India suggest the company is waiting for Indian consumers to buy Apple products at standard prices, Gurman said. He added that Apple may not necessarily make super cheap iPhones to break into the Indian market.

Gurman mentioned this when presenting his case two new Apple locations in India are upscale stores, with the same high-quality products and services as in other countries.

Apple has avoided lowering the price of its products, believing that doing so could harm its brand and…


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