The article titled "Capex surges over 23% in Q1" from the August 1, 2026, edition is reproduced below:
Capex surges over 23% in Q1
SPENDING SPURT. Fiscal deficit stands at over 18.2 per cent of the annual budget target
Shishir Sinha New Delhi
Capital expenditure showed a strong growth of over 23 per cent during the April-June quarter of the current fiscal, data released by the Controller General of Accounts (CGA) showed. Also, revenue receipt growth was nearly 11 per cent, which helped the fiscal deficit to stay around 18 per cent.
The deficit, as a percentage of the annual estimate prescribed in the Budget, reached 18.2 per cent in the first quarter, slightly higher than 17.9 per cent in the last fiscal. The Centre has set a fiscal deficit target of 4.3 per cent of the GDP or ₹16.96 lakh crore in the current fiscal.
In absolute terms, the fiscal deficit, which is the difference between total expenditure and revenue, was ₹3.08 lakh crore in the April-June period of FY27.
According to the CGA, the Centre’s net tax revenue was ₹6.36 lakh crore, or 22.2 per cent of the corresponding BE 2026-27 of total receipts, up to June 2026. In the corresponding period of the previous fiscal, the net tax revenue was at 19 per cent of that year’s BE. The data on the monthly accounts showed that the total expenditure during the first quarter was at ₹13.57 lakh crore, or 25.4 per cent of BE. In the year-ago period, it was at 24.1 per cent of BE.
According to DK Srivastava, Chief Policy Advisor, EY India, CGA’s fiscal data for the first quarter of 2026-27 show relatively buoyant performance of direct taxes, especially the corporate income tax which shows a growth of 19.7 per cent. In contrast, GST revenues continue to show contraction at (-) 1.1 per cent as a result of which indirect taxes contracted by 3.7 per cent. Total net tax revenues show a growth of 20.8 per cent.
“This implies a contraction in the assignment of Central taxes to the States to the extent of (-) 19.5 per cent in 1Q 2026-27," Srivastava said. "Centre’s net tax revenues supplemented by non-tax revenues which contributed 37 per cent of Centre’s net revenue receipts enabled the Centre to maintain a strong growth in expenditure in the first quarter showing a growth of 25.7 per cent while limiting the first quarter fiscal deficit to 18.2 per cent of the annual budgeted target”.
WAR IMPACT
Madan Sabnavis, Chief Economist at Bank of Baroda, feels that the balances are under control. This is significant because Q1 was the time when there was major disruption on account of the war where there was additional pressure on both the fertilizer subsidy front as well as tax revenues as the excise duty was lowered on fuel.
“Depending on how the war pans out and crude oil prices, it does look like that the expenditure on revenue account could be higher and in case capex is maintained, there can be pressure on the fiscal deficit ratio," Sabnavis said. "In the Union Budget, there can be a slippage of 0.3-0.4 per cent of GDP. Higher growth in GDP will provide statistical cushion, however”.
The article titled "India left out of Bloomberg Global Aggregate Index" from the August 1, 2026, edition is reproduced below:
India left out of Bloomberg Global Aggregate Index
STEEP DROP. Meanwhile, FPI flows via FAR fell 85% to $322 m in July vs $2.27 b in June
Our Bureau Mumbai
India’s much-anticipated entry into the Bloomberg Global Aggregate Index has been put on hold, with Bloomberg Index Services Ltd (BISL) deciding not to include Indian government bonds at this stage and continuing its review process.
This decision means India will have to wait longer for credible inclusion in one of the world's most widely tracked bond benchmarks, despite the initial optimism that the inclusion of the world’s fifth largest economy’s bond market is moving closer to meeting market expectations. Bloomberg acknowledged that there has been meaningful progress in recent years in improving accessibility for investors but adding that the country’s bond market is still evolving.
The exclusion is a disappointment as markets were expecting the inclusion to come after the government’s efforts to solve issues regarding holding tax and capital gains tax, which addressed an important part of the tax-compliance burden for foreign investors.
“Bloomberg’s decision is a disappointment, especially given the government’s efforts,” said Gaura Sen Gupta, chief economist, IDFC First Bank. “Bloomberg appears to believe that some operational and market-access challenges remain and wants to see recent reforms become more firmly established before taking a final call,” she added, stating that the inclusion in the Bloomberg Index would have seen passive inflows of around $25 billion in FY28.
Meanwhile, foreign portfolio investment (FPI) via fully accessible route (FAR) has shown a sharp upside in July after a bumper flow in June following the lower spread between US and Indian yield.
FPI SLOWDOWN
In July, FPI flows via FAR slipped 85 per cent to $322 million, compared to $2.27 billion in June 2026. However, for the seven months from January to July, the FPI inflow recorded a 6.2 per cent jump to $4.2 billion compared to $3.96 billion in the same period last year.
“Bloomberg announcement is likely to trigger a profit-taking sentiment. We could see some outflows from the FAR and bond yields may open higher on Monday as part of the optimism around index inclusion gets unwound,” added Sengupta.
While Bloomberg recognition remains elusive, India’s progress through expanded electronic bond trading and the removal of key taxes for foreign investors has improved market accessibility and efficiency. It also pointed out that global investors want these reforms to be more firmly established in practice before index inclusion.
ONGOING REVIEW
Concerns remain around the full rollout of automated trading across key regions and the need for smoother account-opening and on-boarding processes for foreign investors.
That said, Bloomberg has not closed the door on India. The review remains ongoing, and if operational bottlenecks are addressed and recent reforms deliver smoother market functioning for foreign investors, India’s inclusion prospects remain intact.
The article titled “Banks raise interest rates on fresh term deposits and loans” from page 7 of the sources is reproduced below:
Banks raise interest rates on fresh term deposits and loans
FUNDING PRESSURE. Also hikes median MCLR to 8.6% in July
Our Bureau Mumbai
Scheduled commercial banks (SCBs) are gradually raising interest rates on fresh term deposits and loans amid a wide gap between credit and deposit growth.
The weighted average domestic term deposit rate (WADTDR) on SCBs’ fresh rupee term deposits rose 16 basis points (bps) from 5.63 per cent in June 2025 to 5.79 per cent in June 2026. The WADTDR on fresh rupee term deposits in June 2026 is up from 4.29 per cent in April 2026. The WADTDR on outstanding rupee term deposits increased marginally to 5.69 per cent in June 2026 from 5.57 per cent in May 2026.
The weighted average lending rate (WALR) on fresh rupee loans of SCBs nudged up to 8.53 per cent in June 2026 from 8.51 per cent in May 2026. The WALR on outstanding rupee loans of SCBs declined to 8.95 per cent in June 2026 from 8.97 per cent in May 2026.
GROWTH GAP
In May 2026, the gap between year-on-year (y-o-y) credit growth (18.38 per cent) and deposit growth (13.22 per cent) as at June 30, 2026 stood at 516 basis points. However, the situation was worse in April 2026, with credit growth (20.24 per cent) and deposit growth (8.84 per cent) lagging behind; the gap stood at 1,140 basis points.
To deal with the asymmetry between credit and deposit growth, banks have also raised their benchmark rates. The median marginal cost of funds based lending rate (MCLR) rose to 8.60 per cent in July from 8.50 per cent in June.
Rama Chandra Reddy, Chief Treasury, Karur Vysya Bank, said: “Banks raised their short-term and medium-term term deposit rates of various buckets in June, reflecting aggressive liability mobilization in the first (April–June 2026) quarter balance sheet build up. He said the increase was more pronounced among private sector banks, where fresh deposit rates climbed to 6.21 per cent from 5.94 per cent, driven by intense competition for bulk deposits in June”.
REPRICING BENEFIT
Reddy opined that the cost of outstanding term deposits has largely bottomed out at around 6.58 per cent for SCBs (6.7 per cent for private banks) signalling that the repricing benefit is nearing its end.
“Looking ahead, Q2 (July–September 2026 quarter) is likely to witness renewed upward pressure on deposit costs. Strong mobilisation efforts by banks facing a continued reliance on term deposits are likely to keep CASA growth and sustained credit demand at bay. They are expected to increase the share of higher cost incremental term deposits,” he said.
Consequently, the repricing gains enjoyed over recent quarters are likely to fade with banks facing a gradual firming in their overall cost of deposits. This is also reflected in the initial hardening of banks' 1-year MCLR rate.
The article titled "Israel must approve Trump agreement before we implement it, says Hamas official" from page 12 of the sources is reproduced below:
Israel must approve Trump agreement before we implement it, says Hamas official
Reuters
Dubai/Jerusalem
Implementation of the deal to bring peace to Gaza announced by US President Donald Trump will depend on Israel first meeting its terms, under the ceasefire agreement reached last year, a senior Hamas official told Reuters on Friday.
In a post on his Truth Social platform on Thursday, Trump announced a "major milestone" towards ending the war in Gaza, saying his administration had finally reached an agreement for the complete disarmament of Hamas and other armed groups. The announcement followed months of faltering efforts to keep the ceasefire.
NEGOTIATIONS
Ghazi Hamad, a Hamas official involved in the negotiations, said the group was ready to accept an agreement he said was "difficult and painful." But he avoided using the term disarmament and said the agreement was a "comprehensive framework" that would depend on Israel implementing the first phase of the Sharm el-Sheikh agreement. On the disarmament agreement, he said Israel was required to end its attacks in Gaza and withdraw its forces to where they stood in October 2023, before the free flow of goods and aid coming into the Gaza Strip is resumed.
Only then would Hamas consider handing over its weapons for storage by the Palestinian Authority and the administration of Gaza (NCAG), the technocratic body set up to run the enclave. "We insisted to the mediators that Israel must abide by the agreement," he said.
On Tuesday, Trump met with Israeli Prime Minister Benjamin Netanyahu, who faces an election in October, with right-wing parties that have opposed previous deals in Gaza. Reports of a potential political source said Israel would not agree to withdraw forces from the Netzarim Corridor or the Philadelphi Line before Hamas is disarmed and the Gaza Strip is demilitarised.
Previous attempts to reach an agreement have foundered amid mutual suspicion and each side's insistence that each other must move first. The planned oversight body for Gaza, NCAG, issued a statement welcoming "the progress announced yesterday regarding the roadmap and the opening of a new chapter towards beginning its implementation."
The article titled "Digital democracy" from page 6 of the sources is reproduced below:
Digital democracy
Social media platforms need to assume responsibility
The recent student protests have underscored a reality that democracies across the world are grappling with: technology has become both an enabler of legitimate democratic expression and a powerful instrument for manipulation and control. The protests have exposed vulnerabilities on two fronts: the potential misuse of technology by the state in the name of maintaining public order, and its exploitation by sections of protesters and anti-social elements to spread misinformation and inflame public sentiment.
Governments have a legitimate responsibility to maintain law and order. If there is credible intelligence of attempts to incite violence or coordinate criminal activity, temporary restrictions on communications or targeted surveillance of those involved in unlawful acts may be warranted. Yet such powers must remain an exception, be transparent and be exercised within the confines of the law. The blocking of internet services around protest sites or the deployment of surveillance technologies to identify protesters and silence legitimate critical posts of the government have raised concerns over excessive state intervention.
A balance must be struck. There must be clear legal standards, independent oversight and avenues for judicial review to ensure that extraordinary powers are used sparingly and with transparency. There must be no room for these powers to be used to settle political scores or suppress legitimate dissent. The other lesson from the protests is the ease with which social media platforms were misused by some participants and vested interests to spread misinformation. Misleading videos and inflammatory content designed to provoke outrage rather than informed debate gained traction with alarming speed, demonstrating how easily misinformation can shape public narratives during moments of public tension.
This is not merely an Indian phenomenon. Across the globe, platforms have repeatedly been exploited to amplify propaganda, spread rumours and mobilise mobs. In recent years, developments in artificial intelligence have lowered the cost and increased the sophistication of such campaigns, making deepfakes and bots harder to detect and easier to disseminate. Social media companies can no longer afford a hands-off approach. While they correctly argue for the protection of free speech, they also have a responsibility to act swiftly against demonstrably false information and coordinated disinformation campaigns and content that incites violence or hatred. Transparency in moderation decisions, stronger detection of AI-generated content and accountability for repeat offenders are essential if digital platforms are to remain spaces for democratic discourse. Technology itself is neither friend nor foe; it is the framework for using it that strengthens democracy, or weakens it.
The article titled "IT sector's productivity engine gathers steam" from page 13 of the sources is reproduced below:
IT sector's productivity engine gathers steam
REWRITING PLAYBOOK. Revenue per employee improves across tier-I firms as AI, better utilisation and tighter hiring boost efficiency
Sanjana B Bengaluru
The June quarter highlighted a structural shift in India’s IT services industry: a move from volume-led to productivity-led one, with Tier-I firms reporting increasing revenue per employee (RPE) despite a slowdown in headcount.
The trend across Tier-I companies points to improving efficiency rather than workforce expansion, according to Gaurav Vasu, Founder and CEO of UnearthInsight. TCS reduced its headcount by 3.1 per cent year-on-year while increasing revenue by 4.4 per cent. Tech Mahindra’s workforce fell by 5.4 per cent, but its revenue rose 7.4 per cent. This reflects a combination of higher utilisation and the initial impact of AI-driven productivity improvements.
Infosys and HCLTech, meanwhile, managed to increase both headcount and productivity. Infosys expanded its workforce by 2.2 per cent and improved RPE by 1.1 per cent, while HCLTech added 0.3 per cent to its headcount as RPE rose 2.6 per cent. “These companies are growing workforce without compromising productivity, reflecting stronger resource planning and AI-driven efficiencies,” Vasu added.
During Infosys' Q1FY27 earnings call, CEO and MD Salil Parekh attributed the company's improving revenue per employee to sustained efficiency gains. “We recruited 20,000 college graduates in FY26 and plan to recruit another 15,000-20,000 this year and 4,000 joined in the first quarter. As our efficiency and improvements continue,” he said.
TIER II: MIXED PICTURE
The trend is less consistent among tier-II firms. LTIMindtree’s RPE reduced by 3.3 per cent while adding 4.1 per cent to its headcount, indicating strong investment in talent development. In contrast, Wipro and LTPS expanded their workforce but saw RPE decline by 3.9 per cent and 8.4 per cent, respectively, suggesting higher-than-expected headcount growth as they invest ahead of an anticipated recovery.
According to Sanketh Chengapha, Director-Professional Staffing at Business Head Adecco India, “The industry is pivoting from a scale-driven metric to a productivity-driven one”. He noted that the June quarter reflects an uptick in results particularly among tier-1 firms that have focused on more efficiency while maintaining discipline on headcount expansion.
Higher RPE was driven by improved utilisation, tighter bench management, selective hiring, moderated fresher intake, and expansion into high-value services such as AI-driven automation and digital transformation.
EFFICIENCY OVER VOLUME
“In many cases, RPE improved because workforce expansion slowed, talent deployment became more efficient and companies focused on higher-margin services," Gaurav Vasu noted. He also stated that selective hiring, attrition management, and operational restructuring supported this growth despite modest revenue increases.
Analysts stressed that companies with stronger demand visibility continue to recruit, particularly in AI, cloud, and engineering, while maintaining productivity through automation. “AI adoption is also gradually improving developer productivity and streamlining delivery, but its financial impact is still evolving. For now, AI is acting more as a productivity multiplier than a full-scale growth driver,” Vasu said. He concluded that the relationship between revenue growth and headcount growth is weakening as the industry transitions to a productivity-driven model where AI-assisted tools and operational efficiency become as important as workforce expansion.
Leaner & stronger
| Company | Q1 FY26 headcount | Q1 FY27 headcount | y-o-y growth (%) | RPE Q1 FY27 y-o-y growth (%) |
|---|---|---|---|---|
| TCS | 6,15,318 | 5,96,222 | -3.1 | 4.4 |
| Infosys | 3,36,298 | 3,43,838 | 2.2 | 1.1 |
| Wipro | 2,43,000 | 2,51,000 | 3.3 | -3.9 |
| HCLTech | 2,23,000 | 2,23,800 | 0.3 | 2.6 |
| Tech Mahindra | 1,48,000 | 1,40,000 | -5.4 | 7.4 |
| LTIMindtree | 81,000 | 84,334 | 4.1 | -3.3 |
Source: UnearthInsight
The article titled “Artificial intelligence lifts Q1 global trade despite West Asia conflict” from page 12 of the sources is reproduced below:
Artificial intelligence lifts Q1 global trade despite West Asia conflict
THE OUTLOOK. WTO economists expect to see larger contractions in Middle East trade flows by the end of the year, together with stronger growth in Asia and North America
Our Bureau New Delhi
Global trade in goods grew faster than expected in the Q1 of 2026 despite the outlook for the West Asia conflict as booming trade in artificial intelligence (AI)-related electronic components offset the negative effects of the disruptions in the Red Sea, which began in the final month of 2024, the World Trade Organization (WTO) said.
The WTO, however, cautioned that escalation of the conflict, including the risk of trade disruptions through the Strait of Hormuz, would only become visible in the Q2 data and warned of much steeper contractions in global trade volumes involving the Middle East/West Asia.
“The effects of the Strait of Hormuz disruptions in global trade is expected to be more visible in Q2 2026 data when compared to the 1.9 per cent growth in 1Q 2024,” the report said.
According to the latest WORLDTRADE data, the seasonally adjusted volume of world merchandise trade rose 1.9 per cent in the Q1 of 2026 compared with the fourth quarter and 3.2 per cent (exceeding the earlier forecast of 1.9 per cent). “Strong trade in electronic components related to AI outweighed the negative effects of the outbreak of war in the Middle East, including disrupted shipments through the Strait of Hormuz and North America. “The net fuel-importing countries in East Africa and South East Asia reported that the conflict had negatively impacted their trade,” the report noted.
WTO economists expect Middle East trade flows by the end of the year, together with stronger growth in Asia and North America. “The global impact, meanwhile, will depend on whether it will remain confined to the West Asia conflict that predominates,” the report says, adding that the conflict has already taken a heavy toll on Middle East-West Asia trade, it noted.
REGIONAL IMPACT
The region’s merchandise export volumes fell 9.7 per cent y-o-y in Q1, while imports declined 11.9 per cent. The WTO estimates, based on available reporting country data, also showed world crude oil imports from the Middle East/West Asia falling 21.6 per cent y-o-y in January-March, with imports of liquefied natural gas (LNG) and fertilisers declining 52 per cent and 26 per cent, respectively.
The WTO expects even sharper contractions in the region’s trade during Q2 as the disruptions to shipping and energy supplies is more fully reflected in official statistics.
Asia emerged as the main engine of global trade growth, with exports rising 12.9 per cent and imports 14.8 per cent y-o-y. The expansion was led by strong intra-regional trade in AI-related goods, with South Korea, China, Thailand and Chinese Taipei recording particularly strong export growth.
North America’s Q1 exports also grew strongly at 9.1 per cent. North American imports rose by 2.6 per cent y-o-y from Q1 of 2025, which saw a surge of imports due to front-loading ahead of expected tariff increases.
The article titled “Spain, Morocco crackdown on migrant rush after 49,000 cross into Spanish enclave” from page 12 of the sources is reproduced below:
Spain, Morocco crackdown on migrant rush after 49,000 cross into Spanish enclave
THE FALLOUT. Spanish officials move to expel illegal entrants; Italy threatens to suspend EU's internal open-borders scheme
Reuters
Ceuta, Spain / Rabat, Morocco / Madrid
Spain and Morocco reinforced the border fence of a Spanish enclave on Friday and appeared to have halted a surge of migrants, after around 49,000 people arrived by sea and land in a single day, with at least 19 dead bodies found in the water.
The mass crossing into Ceuta, a Spanish-held spit jutting into the Mediterranean from Morocco, sparked a diplomatic row, with Italy threatening to suspend its participation in the EU borderless scheme. In the early hours on Friday, Moroccan authorities deployed more than 3,000 and pushed people back. The charred remains of a bus and a car could be seen on a road nearby from clashes with the police.
Spanish authorities said they would try to expel those who had entered illegally as quickly as possible, despite a court ruling that has put restrictions on special “border rejection” rules that allow immediate deportation.
‘BIGGEST CRISIS’
Prime Minister Pedro Sanchez is due to visit Ceuta on Friday with Interior Minister Fernando Grande-Marlaska. Ceuta and Melilla, another Spanish autonomous city in northern Morocco, have the European Union’s only land borders with Africa. The two cities are each home to around 80,000 people.
Both cities periodically experience surges in attempted crossings by migrants seeking to reach Europe, but nearly 50,000 crossings in a single day appears to be unprecedented. Spain described it as the biggest crisis since at least 2021. Territorial Policy Minister Angel Victor Torres said on Friday that among factors contributing to the surge may have been a ruling by Spain's Supreme Court earlier this month that migrants intercepted at sea while attempting to reach Ceuta or Melilla cannot be summarily returned.
Torres told a local radio station that the Spanish government had reacted immediately to the surge and would proceed to return the migrants, while respecting court rulings and migrants' human rights. On the Moroccan side of the border, thousands of migrants remained in the town of Fnideq overnight despite a reinforced deployment of security that foiled most attempts to cross. Although the crossing appeared blocked, groups moved along the coast seeking routes around the fence; some prepared to swim.
“I was here,” said Brahim, 32, who gave only one name. He said he had travelled from Tangier hoping to cross through the gate but found it effectively shut. Among those hoping to cross were women and children, from both Morocco and Sub-Saharan African countries further south.
SECURITY LAPSE
In a post on X, Spain's Guardia Civil police association AUGC said there had been too few police in place to monitor the fence during the surge on Thursday, making them unable to stop it.
“Migratory policies reflect the reality of the 21st century and must always respect the dignity and the human rights of the migrants and refugees who arrive in Ceuta,” said a joint statement by several local migrant groups, saying reports of about 50-100 student deaths in Ceuta were false. Migration is a sensitive issue across Europe, where right-wing parties have surged in the decade since a 2015 crisis when more than a million people crossed the continent mainly on foot and sought asylum, most fleeing war in Syria.
ITALY’S WARNING
Italy’s Prime Minister Giorgia Meloni said her country was prepared to “intervene in a massive way if necessary” to defend the borders and the security of citizens, including the suspension of the EU’s internal border-free zone.
The city of citizens, including its government, said it had been “abandoned” by the EU, and that immigrants might have offered a mass amnesty or work permits to tens of thousands of people seeking citizenship over the past year.
In Spain, official data from the Interior Ministry for Ceuta show how the Madrid government's decision to grant Spanish, and therefore EU, citizenship to more than 500,000 irregular immigrants has encouraged and encourages human trafficking,” Italy’s Foreign Ministry said in a note written on Wednesday. Spanish Foreign Minister Jose Manuel Albares replied that Meloni’s remarks were “inappropriate”, and said Italy and Spain should show solidarity and not “partisan demagoguery” from its partner.
The article titled “Apple logs record June quarter in India despite headwinds” from page 10 of the sources is reproduced below:
Apple logs record June quarter in India despite headwinds
KEY FACTORS. Underlying consumer demand remains resilient, Mac products drive growth notwithstanding price hike
Vallari Sanigari
Mumbai
Apple Inc announced a record June quarter in India and other emerging markets in the third quarter of FY26, despite “very significant headwinds” from both supply chain and foreign exchange.
“We see less flexibility in supply chain than we had in the supply from the company’s impact on the supply from the supply to increase significantly sequentially. The progress we have made since the September quarter will be very seeing some very significant headwinds that we’re really,” said Tim Cook, CEO of Apple, during the earnings call on Thursday. Apple records its US, Latin America, Europe, Greater India, China Mainland, Japan and Southeast Asia.
IPHONE REVENUE
The company posted quarterly revenue of $94.9 billion, up 16 per cent y-o-y, led by products and services revenue growth. iPhone revenue was down 1.6 per cent sequentially. iPhone revenue grew 21.6 per cent on year-on-year basis to $54 billion, with every geographic segment and a June quarter record for up and down.
The company gained share globally during the quarter, Cook said, citing IDC data. “India is the most popular iPhone line-up we’ve ever had. More than 10 per cent of buyers are day for AI, powered by a new generation of Apple chips including an array of A19 and A19 Pro,” Cook added.
RISING PRICE
Meanwhile, India is feeling the effect of rising average selling prices (ASP) on board, per IDC data. The country’s average price for iPhones is “close to $1,000” according to industry estimates.
“iPhone shipments held roughly flat to just 1 per cent y-o-y growth — an improvement from the 5 per cent decline seen in Q1 2026. These softer numbers are being driven by supply constraints for certain popular iPhone models. However, consumer interest in iPhones remains very strong. iPhones are still moving at full price and demand remains healthy,” said Prabhu Ram, VP-Industry Research Group, CMR.
Despite this, the brand holds strong appeal in India, leading to confidence that the slowdown will be temporary. Over the next two quarters, IDC does not expect Apple offering festive discounts as interest along with the new series being even higher.
Asked about memory costs, the company said it expects prices to continue rising higher even beyond the September quarter, which could drive an increasing impact on business. “We expected to pay significantly more for memory in the June quarter than the March quarter, and what it happened was, it was partially offset by the benefit of carry-in inventory.”
MACBOOK DEMAND
Mac delivered its best June quarter with a revenue of $10.4 billion, up 28.6 per cent from a year ago, despite supply constraints driven by demand for MacBook Pro and MacBook Neo. These are among the products that received significant updates like in India in June.
“While temporary supply constraints and channel inventory adjustments weighed on June quarter iPhone sell-in, underlying demand for iPhones remains resilient. Apple also delivered its best-ever June quarter in India, with revenue growing 21.6 per cent, supported by strong MacBook Neo adoption. Apple’s aspirational brand positioning continues to attract new consumers and strengthen its ecosystem,” said Shubham Singh, Research Analyst at Counterpoint Research.
BEST PERFORMERS
“The research firm expects single-digit shipment growth and double-digit revenue growth in India this year, supported by premiumisation and a richer product mix. Apple’s overall region, excluding Greater China and Japan, revenue grew by 12.6 per cent annually to $8.8 billion.
Regionally, China, Europe and emerging markets were the standout performers, as Apple’s relative value proposition amid widespread Android price increases. Every market hit his highest-ever second quarter revenue share of 49 per cent in Q2 2026. Revenue rose 22 per cent annually to a second-quarter record, supported by a 13 per cent rise in iPhone sales and 8 per cent growth per unit.
“Unlike peers that pushed through steep price increases, Apple kept pricing largely stable, reflecting its focus on volume growth,” Singh added. “Moving forward, however, Apple will likely increase prices in the coming quarters. This discipline strengthened Apple’s competitive position, enabling growth in both value and volume even as much of the market contracted,” said Singh of Counterpoint Research.
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