Here's the latest sign India will be a key growth market for Apple

Published Tue, Nov 28 20233:21 PM ESTUpdated Tue, Nov 28 20233:30 PM EST

The decision by Apple 's (AAPL) main iPhone manufacturer to invest an additional $1.5 billion in India should further accelerate the Club holding's pivot toward a key emerging market, reducing its reliance on China as a production hub. In security filings Monday, Taiwanese electronics manufacturer Foxconn Technology Group said it will allocate over $1.5 billion to an Indian construction project in an effort to meet its "operational needs." The investment comes as Foxconn, which has long produced iPhones at plants in mainland China, has been shifting some of its manufacturing operations to India. The development could signal an even bigger push for Apple into the world's most-populous country. It's an expansion that will likely further diversify its supply chain, while allowing it to capture smart-phone market share among India's growing middle class. A Foxconn spokesperson did not immediately respond to CNBC's request for comment, and the company has not elaborated on what its new project entails yet or how it could impact Apple's products. AAPL YTD mountain Apple (AAPL) performance year-to-date Foxconn's China-based factories have been crucial for the production of iPhones and other Apple products likes MacBooks. But operations at those plants were hit hard during the Covid-19 pandemic amid a wave of lockdowns and other restrictions, creating numerous supply-chain-related headaches for Apple. Those issues, along with heightened U.S.-China tensions, prompted Apple — and suppliers like Foxconn — to expand into India. CEO Tim Cook has previously told CNBC that India presents a "huge opportunity" for Apple in terms of iPhone sales and manufacturing. The company opened its first retail outlets in the country earlier this year. And over the summer, Apple announced it had started production on the next-generation iPhone 15 in India. Morgan Stanley has forecasted that Apple's revenue in India could grow by seven-times current levels over the next 10 years, to around $40 billion. While China's economy remains under pressure post-pandemic, the Indian market offers significant growth opportunities for a company like Apple. Those include a chance to expand its loyal customer base, boosting both hardware and services revenues, while diversifying a supply chain that had been overly reliant on China. (Jim Cramer's Charitable Trust is long AAPL . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Apple's first physical retail store is located in the populous city of Mumbai.

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