Apple’s India story is getting bigger: Record iPhone upgrades, Mac sales and services revenue

The iPhone still brings customers back to Apple in India and perhaps is the gateway to the hallowed ecosystem from Cupertino. The September quarter offered a glimpse of what else they might buy once they’re there. Apple posted its highest-ever quarterly revenue in the country, with Macs and services also setting all-time India records. At the same time, CEO John Ternus said more people in India upgraded their iPhones than in any previous September quarter.Put those numbers together and there’s a more interesting story than another strong quarter for the iPhone. Apple has three ways to grow in India: sell an existing customer their next iPhone, persuade them to consider a Mac when they need a laptop, and earn from services in the years between those purchases. The earnings call showed strength in all three. It didn’t tell us how often the same customer was doing all three.The Mac record is particularly interesting because it works in both directions. An iPhone owner shopping for a laptop may give the MacBook Neo a look because it costs less than other MacBooks and works with a phone they already own. For someone replacing a Windows laptop who has never owned an Apple device, the Neo could be their first purchase from the company. Either would widen Apple’s reach in India in a way that selling a new Mac to someone replacing an old one wouldn’t.CFO Kevan Parekh credited the MacBook Neo and MacBook Pro for global Mac revenue growth of 24% to $10.8 billion. Apple didn’t say which models drove the India record or how many buyers were new to the Mac. That is the detail to watch: a strong quarter for the Pro and a quarter in which the Neo wins over first-time Mac buyers can both produce record revenue, but only one tells you that Apple is reaching people who might never have considered a Mac.Services add another dimension. Someone can keep the same iPhone for years and still pay Apple every month for iCloud storage or spend money on the App Store. Globally, services brought in $31.6 billion, up 10% and more than a quarter of Apple’s $114.5 billion in quarterly revenue. Apple hasn’t said how close India is to that mix, or whether its local record came from more paying customers, higher spending by existing users or other sources of revenue.For years, a good quarter for Apple in India was easiest to read through the iPhone. That’s still where much of the attention will go. But the Mac and services records give us two more things to watch: whether Apple is becoming a serious option when Indians shop for a laptop, and what customers are willing to pay for after they’ve bought the device.You use AI every day. Now get your AI Quotient. Take the AIQ test.