CEO Tim Cook credited emerging regions like India where the business is drawing away Android phone customers when Apple Inc. stunned investors this week with an increase in iPhone sales despite a decline in the worldwide smartphone market.

Cook is wagering that such regions, with their youthful populations and dearth of iPhones, would offer greater prospects for growth.

According to research firm Canalys, whose data revealed Apple gained market share from Android phones, Apple reported iPhone sales grew 1.5% to $51.3 billion for its fiscal second quarter. This was despite a 13% decline in global smartphone shipments from January to March.

According to Apple, it broke sales records in a number of South Asian, Latin American, and Middle Eastern nations.

In a conference call with investors, Cook stated, “We’re making an effort in a number of these markets and really see a great opportunity for us in those markets, particularly given our low share and the dynamics of the demographics.”

Perhaps Apple’s main concentration is on India. The company just built its first two retail locations there, in Mumbai and Delhi. Cook informed investors that the company set a quarterly record and that year-over-year percentage growth was in the extremely strong double digits.

On the conference call, Cook added, “There are a lot of people entering the middle class, and I really feel that India is at a tipping point, and it’s great to be there.”

According to research firm Counterpoint, Apple gained 18% of the overall value of smartphone shipments in 2022, placing it second only to Samsung in terms of revenue-generating brands in India.

Selling an iPhone in a developing region gives Apple the chance to gradually entice customers to buy additional Apple products and services over time, rather than just one single gadget. Customers who purchase an iPhone initially might later purchase an Apple Watch, a pair of AirPods, or subscribe to a service.

Although average revenue per user, or ARPU in the subscription sector, will take some time to catch up to Apple’s other regions, Cook said he saw prospects for Apple in India’s services market.

The creation of a thriving market for old iPhones is one of the reasons Apple has been able to increase its market share in both emerging and developed economies.

In volume terms, used iPhone sales increased 16% globally in 2022. According to Counterpoint, India had the highest growth rate with a 19% increase, and 11% of all secondary smartphone purchases there were iPhones.

Apple’s Cook stated that refurbished smartphones only account for a small portion of Apple’s direct iPhone income in an interview with Reuters on Thursday. He claimed that the firm has made an effort to support the used iPhone industry by providing trade-in offers on its iPhones and making them durable enough to last through several owners.

Cook stated in the interview, “We stimulate the market and it gives us a chance to target some price points that we would not otherwise participate in.