According to Morgan Stanley analysts, India is poised to play a significant role in Apple’s growth strategy over the next five years, CNBC Is reporting.
The investment bank highlighted Apple’s manufacturing initiatives in India and the country’s thriving economy as key drivers behind this trend.
In a recent note, Morgan Stanley raised their price target for Apple, specifically citing India’s potential. The new price target stands at $220, with a bull-case valuation of $270.
The analysts predict that India could contribute to 15% of Apple’s revenue growth over the next five years. This is a substantial increase compared to the 2% contribution observed in the past five years, amounting to nearly $6 billion.
Additionally, India is expected to account for 20% of Apple’s installed base growth. The estimated revenue growth for the next decade is a staggering $40 billion, which the analysts describe as equivalent to Apple launching an entirely new product category.
The assessment by Morgan Stanley considers multiple factors, including India’s improving electrification efforts and Apple’s active pursuit of manufacturing and retail expansion within the country.
A survey conducted on behalf of Morgan Stanley indicated that Indian consumers are increasingly interested and financially capable of purchasing iPhones.
However, the analysts offer a cautionary note, highlighting the importance of India meeting its economic and demographic growth targets. Failure to do so could impact Apple’s potential in the market.
Nonetheless, Morgan Stanley maintains a bullish stance on Apple’s prospects in India. They believe that India will be as crucial to Apple’s growth in the next five years as China was in the previous five.
