According to analysts from Morgan Stanley, India is expected to be a significant driver for Apple’s revenue and installed base growth over the next five years. The reason behind this projection is attributed to Apple’s investment in manufacturing facilities in India and the country’s thriving economy. The note suggests that India’s market potential and Apple’s commitment to local production will play a crucial role in the company’s growth in the region.
Morgan Stanley, in the same report, also raised the price target for Apple, with a particular focus on India. The new price target was increased from $190 to $220, reflecting an optimistic outlook on the company’s performance. Additionally, the report mentioned an improved bull-case valuation of $270. Apple was once again highlighted as Morgan Stanley’s top pick, indicating their confidence in the company’s prospects.
Contrary to the previous five years’ growth of 2% and $6 billion revenue from India, Morgan Stanley analysts foresee a significant increase in the next five years. They predict that India may contribute to 15% of Apple’s revenue growth and 20% of its installed base growth during this period. This anticipated $40 billion surge in sales over the next decade is comparable to Apple launching an entirely new product category.
The basis for this conclusion is a combination of factors, including India’s increasing electrification and Apple’s endeavors to establish manufacturing and retail operations in the country. A survey commissioned by Morgan Stanley indicates that Indian consumers show a higher likelihood of being able to afford and wanting to purchase iPhones.
However, the analysts did add a caveat, stating that the realization of these predictions relies on India achieving its economic and demographic growth targets. If those targets are not met, the impact on Apple’s growth in India might be less significant.
