Apple has been making significant investments in India in recent years, opening its Indian online store in 2020, its first retail store in the country in 2021 and announcing plans to manufacture iPhones locally. These investments are paying off, as Apple’s market share in India has been growing steadily. In the second quarter of 2023, Apple became the fifth largest iPhone market in India, overtaking France and Germany.
India will likely be a major driver of Apple’s five-year revenue and installed base growth, Morgan Stanley analysts said in a note Monday, citing Apple’s investment in manufacturing in India and the country’s “economic boom.”
The note also reflected a new India-driven price target increase, from $190 to $220, with a bull-case valuation increased to $270. Morgan Stanley also reiterated Apple as their Top Pick.
Morgan Stanley analysts forecast that over the next five years, the country could account for 15% of Apple’s revenue growth — in contrast to 2% in the past five years and $6 billion today — and 20% of the company’s installed base growth.
The revenue growth, which Morgan Stanley forecasts at $40 billion over the next 10 years, would be the “equivalent to Apple ramping an entirely new product category.”
