When Apple Inc surprised investors this week with an increase in iPhone sales despite a downturn in the global smartphone market, CEO Tim Cook gave credit to emerging markets such as India, where the company is poaching users of Android phones.

Cook is betting that these markets will provide more growth opportunities because of the young population and relatively small number of iPhones.

Apple said iPhone sales rose 1.5 percent to $51.3 billion in its fiscal second quarter, even as global smartphone shipments fell 13 percent in January and March, according to research firm Canalys, whose data show that Apple wrested market share from Android phones.

Apple said it set sales records in several countries in South Asia, Latin America and the Middle East.

India may be Apple’s biggest target. The company recently opened its first two retail stores there in Mumbai and Delhi, and while Apple doesn’t disclose earnings in that country, Cook told investors that a record was set this quarter, with percentage growth in the very high double digits compared to last year.

According to research firm Counterpoint, Apple was the second-largest revenue-generating brand in India in 2022, behind only Samsung, as it received 18 percent of total smartphone shipments.

For Apple, selling iPhones in emerging markets isn’t just about selling one device; it’s a chance to attract consumers to Apple devices and services over time. Customers who start with an iPhone can later buy an Apple Watch or AirPods or sign up for subscription services.

Cook said he sees opportunities for Apple in India in services, but noted that average revenue per user — a metric known as ARPU in the subscription business — will take time to catch up to Apple in other markets.

Part of the reason Apple has been able to gain market share in both emerging and developed markets is the emergence of a booming market for used iPhones.

In 2022, sales of refurbished iPhones grew 16% worldwide. According to Counterpoint, India led the growth at 19%, with iPhones accounting for 11% of India’s used smartphone sales.

Apple CEO Cook said that a small portion of Apple’s direct revenue from iPhone sales comes from refurbished devices. But he said the company is trying to support the used iPhone market by offering trade-in deals on its iPhones and making them durable enough to last several owners.