Apple has been diversifying its manufacturing operations beyond China, and its latest move is a $7 billion worth of iPhone production in India in 2022. The country has become a major profit center for the tech giant, and the boost in manufacturing activity in India is apparently by design, as Apple looks to expand its presence in the Asian market beyond China.

India is a lucrative market for Apple, as the country’s premium smartphone market has doubled in value in recent years. According to Canalys, the market has grown from 3.1% in 2019 to 6% in 2022. This growth potential has not gone unnoticed by Apple, which has been ramping up its manufacturing activity in the country.

Apple now manufactures about 7% of its global iPhones in India, a significant rise from 2021 when only 1% of iPhones were made in the country. The heightened manufacturing activity comes at a time when Apple is making a big move in India, with plans to open its first retail store in Mumbai on April 18 and another in Delhi on April 20.

The move to India is not just a strategy for tapping into a lucrative market; it is also an insurance policy for Apple in case its massive Chinese product partnerships fray due to geopolitical differences between the US and China. This, along with a weakening global economy and ongoing supply chain issues with Foxconn, Apple’s manufacturing partner in China, makes it apparent that Apple wants to broaden its Asian operations.

Apple CEO Tim Cook has expressed his bullishness on India, citing “double-digit” growth in Apple iPhone users in the country during a February earnings call. With India’s Prime Minister Narendra Modi signaling that the country is wide open for business, Apple is poised to take advantage of the country’s growth potential.

As Apple continues to expand its manufacturing operations beyond China, India is likely to become an increasingly important profit center for the tech giant. With a growing premium smartphone market and a business-friendly government, India is the perfect destination for Apple’s continued expansion in the Asian market.