Despite reporting a decline in revenue for the second consecutive quarter, Apple has found a silver lining in the form of surging iPhone sales driven by strong demand in emerging markets. This marks the third time in a decade that the tech giant has posted back-to-back quarters of falling revenue, with revenue for the three months ending April 1 at $94.8 billion, down 3% from the same period last year.

However, Apple exceeded analyst expectations, as the company’s CFO, Luca Maestri, highlighted the iPhone’s success in developing markets. Strong iPhone growth was recorded in countries such as India, Indonesia, Latin America, and the Middle East. Maestri attributed Apple’s success in regions like India to recent investments, new retail stores, and a focus on nurturing the app-developer community.

Foreign exchange rates continue to challenge Apple, but the company grew in constant currency terms. Last month, Apple opened its first retail store in India, which could help accelerate new iPhone demand throughout the year. Additionally, the company is considering India as a potential major location for further diversifying its supply chain away from China.

Apple’s premium iPhone Pro sales have become crucial to the company’s revenue growth strategy as shipment growth has slowed. Demand for Pro models has elevated the average selling price of the iPhone, contributing to Apple’s strong iPhone revenue, which some investors interpret as a positive sign of broader economic sentiment.

As Apple gears up for its annual developer conference next month, the company is expected to announce new software for its devices and unveil a headset that merges virtual and augmented reality into one device. While the product is not anticipated to be a significant financial contributor in the near future, Apple’s resilience in the face of economic uncertainty signals the company’s adaptability and commitment to growth in the ever-changing tech landscape.