Apple's pivot from China to India is working

Sales for the 12 months ended March 31 totaled nearly $8 billion, with iPhones making up almost half of all sales. The boost in sales signal that Apple’s pivot from China is working. Apple has worked to expand its footprint in Asian countries such as India, Indonesia and Vietnam as it looks to reduce its reliance on China.

In recent years, Apple has strengthened its ties with India on both the supply and demand side of its business, producing iPhones there since 2017 and opening its first retail store in the country last year. On the demand side, Apple has looked to tap into the country, home to the world’s largest population. India’s smartphone market has historically been dominated by Google $GOOGL’s Androids, and iPhones still represent only 3.5% of smartphones in use by consumers there. Apple’s recent sales surge in India comes just as sales in China slump.

On the supply-side, Apple has been encouraging suppliers to move toward India-made batteries for its smartphones and move some production to India. About 14% of its iPhones were made in India last year. Apple is also investing more in suppliers in Vietnam, and it may start making iPhones in Indonesia as well.

Apple shares surged to another new high on Monday, at one point hitting $237, and its market cap soared to $3.6 trillion. The company became the first to hit a market capitalization of more than $3.5 trillion last week. Apple has experienced a massive stock rally since unveiling its AI strategy at the Worldwide Developer Conference in June.