Apple reports record India revenue in Q4 FY26, launches Apple Pay with Axis Bank

Record revenue in India

Apple reported all-time revenue records in India for the September quarter of fiscal 2026, according to YourStory and Inc42. The growth was driven by strong iPhone and Mac sales, with iPhone ranking among the top-selling smartphone models in the country. A record number of upgraders contributed to the surge in iPhone sales, while Mac revenue reached new highs due to demand for the MacBook Neo and MacBook Pro.

The launch of Apple Pay in India on September 30, in partnership with Axis Bank, further underscored the company’s focus on the market. Apple Pay supports Visa and Mastercard credit cards issued by Axis Bank but does not include RuPay cards at launch. The service is accepted by millions of merchants, including Blinkit, Zomato, Croma, ixigo, Tata 1mg, and Chaayos.

Global financial performance

Apple’s global revenue for the September quarter reached $114.48 billion, up 11.72% year-over-year (YoY), while full-year revenue for FY26 was $478.83 billion, a 15.06% increase. Net profit for the year rose 18% YoY to $132.18 billion, with quarterly profit after tax at $30.71 billion, up 11.81% YoY.

iPhone revenue grew 17.46% YoY to $57.58 billion, driven by global demand for the iPhone 18 Pro and the foldable iPhone Duo. Services revenue hit a record $31.57 billion, up 9.82% YoY, with paid subscriptions exceeding 1.5 billion. Mac revenue also jumped 23.68% YoY to $10.79 billion, attributed to strong adoption of the MacBook Neo and MacBook Pro.

However, iPad revenue declined 10.4% YoY to $6.23 billion due to supply constraints, and wearables, home, and accessories revenue fell 7.91% YoY to $8.3 billion. Apple’s active installed base exceeded 2.5 billion devices, with $137 billion in cash reserves.

Challenges and outlook

Despite the record revenue, Apple faced challenges, including memory cost inflation and supply chain bottlenecks, which compressed profit margins. Operating expenses rose 20.58% YoY to $19.19 billion, with research and development (R&D) costs surging 32.3% YoY to $11.73 billion due to investments in generative AI and custom silicon.

For the December quarter, Apple expects revenue growth of 7-10% YoY, which would set another quarterly record.

What this means

Lazyfounder analysis — our interpretation, not reported fact.

Apple’s record revenue in India is a clear signal of the market’s growing strategic value for global tech giants. For founders and operators in India, this underscores the potential of premium consumer electronics and digital payments, particularly in partnerships with established financial institutions. The launch of Apple Pay could also intensify competition in India’s digital payments space, prompting local players to innovate or collaborate to retain market share.

For operators in emerging markets, Apple’s success in India—despite global supply chain challenges—demonstrates the viability of premium hardware in high-growth regions. However, the decline in iPad and wearables revenue suggests that even established players must continuously adapt their product strategies to local demand.

The surge in R&D spending, particularly in AI and semiconductors, indicates Apple’s long-term bets on technology differentiation. For startups and operators, this trend highlights the importance of investing in proprietary technology to stay competitive, even if short-term margins are affected.

Key takeaways

• India’s performance signals growing importance in Apple’s global strategy, offering a template for other emerging markets.
• Apple Pay’s launch in India could accelerate digital payment adoption among Indian consumers and businesses, creating opportunities for fintech partnerships.
• Declining iPad and wearables revenue highlights the need for product refreshes or market-specific strategies to reignite growth.
• Rising R&D costs reflect Apple’s focus on AI and semiconductor innovation, which may shape future product differentiation.

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