Read this Friday’s edition of the FolhaMercado newsletter (4) – 05/05/2023 – Market

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How India Helped Hold iPhone Sales

In Apple’s first quarter results, released this Thursday (4), there is a highlight mentioned by company executives: the strength of iPhone sales in emerging markets, mainly in India.

The billing with the smartphone in emerging markets –Brazil and other countries in Latin America are also included in this list– was what helped the company to surpass the analysts’ estimate.

In numbers: Apple recorded its second consecutive drop in revenue, but the decline was 2.5%for $94.84 billion (about BRL 475 billion), while the market expected a drop of 4.4%The $93 billion.

• iPhone sales soared 1.5%at US$ 51.33 billion, compared to analysts’ expectations of a drop of 3.3%at US$48.9 billion.

Which explains: India, which overtook China this year as the most populous country in the world, represents one of the big bets of the apple company for the coming years.

• Not only for its consumer market, but also as a way to diversify its production, today still concentrated in the country led by Xi Jinping.
• The transition was accelerated at the end of last year, when Covid closed the world’s largest iPhone factory in Zhengzhou and affected Apple’s production.
• Last month, the company opened its first store in India, which could help accelerate demand for iPhones next year, analysts told the Wall Street Journal.

The change is also seen as a way for the company to avoid domestic problems, as it escapes an increasingly fierce geopolitical dispute between the two largest economies in the world.

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Mateus surpasses GPA in supermarket ranking

Grupo Mateus, owner of wholesale stores and supermarkets in the North and Northeast of the country, surpassed the revenues of GPA (Grupo Pão de Açúcar) and reached third place in the Abras Ranking, made by the supermarket association.

• The leadership continued with Carrefour, for the seventh year in a row.

In numbers: the French group earned BRL 108.1 billion in 2022, almost 80% more than Assaí Atacadista, which ranked second, with BRL 59.7 billion.

• Next come Mateus (R$24.6 billion), GPA (R$18.5 billion) and Supermercados BH (R$14 billion).

Which explains: the result shows the strength of the wholesale sector in the country, the flagship of Grupo Mateus.

• The preference of the Brazilian consumer for wholesale came in the wake of the inflationary pressure that hit the Brazilian pocket, mainly the middle class.
• With reduced purchasing power, consumers began to prefer discounts to the diversity of hyper and supermarket products.

the GPAowner of the Pão de Açúcar, Compre Bem, Market Extra and Colombian Éxito banners, had a net loss of BRL 1.1 billion in 2022, reversing a profit of BRL 777 million in the same period of 2021.

• The group justified the losses due to the increase in tax and labor contingencies in the period. Without these factors, the loss would have been R$ 146 million.