The March quarter saw a 2.9% decline in Apple sales in China due to the market's lackluster economic development, but the company's overall earnings outperformed forecasts as it works to diversify its supply chain to countries such as India.

In the first three months of the year, the world's largest firm by market capitalization saw its global revenue fall by 2.5% to US$94.8 billion.

Despite consumers' and businesses' tightening spending owing to rising prices, iPhone sales increased 1.5% to $51.3 billion, beating forecasts for a 3.3% decline. According to research firm Canalys, worldwide smartphone shipments dropped 13% during the first quarter of 2023, but Apple gained market dominance over Android rivals.

Sales for Apple in Greater China, which includes Taiwan, Hong Kong, and Macau, totaled US$17.8 billion. Revenue in the Americas decreased 7.6% to US$37.8 billion.

India is now a major focus for Apple. Tim Cook, the CEO of Apple, said in an interview with Reuters on Thursday that the company's fiscal second-quarter iPhone sales broke a record, in part because it attracted new customers in markets like India, where Cook just visited to inaugurate the first Apple stores.

According to Counterpoint, shipments of iPhones built in India increased 65% on an annual basis in 2022.

Apple supplier Foxconn is currently preparing a new US$700 million plant in India to increase local production, sparking speculation that China may soon lose its hegemonic position in Apple's supply chain.