What's going on?

Reports out Monday showed India’s set to become very important for Apple.

What does this mean?

While Apple isn�t dishing out results until next month, the tech giant already hinted at a possible revenue dip last quarter, as global economies and tech demand shrink. But while some areas sour, India could be poised to keep Apple sweet. That�s down to the rapidly growing middle class, in a country where Apple products have barely made a dent among the 1.4 billion population. See, so far, budget-friendly local brands have stolen the show, and only 4% of the nearly 700 million smartphone users in India sport Apple devices. But things are changing: the firm snatched the top spot for sales of devices over $365 last year, and reports out on Monday suggest that sales in India hit a new high last financial year. If they�re right, then it�s no surprise Apple�s opening its first stores in the country this week.

Why should I care?

Zooming in: Upsetting China�s apple cart.
Winning over Indian customers could simplify Apple�s logistics, especially now the company�s ramping up Indian production lines in a bid to ease reliance on China. Reports out last week showed Apple assembled more than $7 billion worth of iPhones in India last fiscal year � tripling production from the year before. That amounts to around 7% of all iPhones, a leap from 1% two years ago. Plus, with wages over 50% lower than China�s, this move could fatten Apple�s profit margins too.

The bigger picture: Apples to oranges.
Apple�s Indian shift dovetails with the government�s plan to rival China as the world�s factory, and the move could entice other Western firms to follow suit. But while the country offers perks � like an ample workforce, a fast-growing economy, and incentives for manufacturers � there�s still a ways to go. Crucially, India�s infrastructure (think roads and ports) still lags well behind China�s, which could be a dealbreaker for many.