Apple Stock (NASDAQ:AAPL) climbed over 1% on Monday following a report from investment firm Morgan Stanley, highlighting positive developments for the tech giant in India. According to Morgan Stanley, India has the potential to contribute up to 20% of Apple’s installed base over the next five years.
A team of analysts at Morgan Stanley, who rates Apple as overweight, observed Apple’s increasing market share, a favorable shift in the iPhone product mix, and the strong ecosystem effect. They predict that Apple’s revenue could grow more than sevenfold in the next decade, reaching around $40 billion.
Furthermore, Morgan Stanley raised its price target for Apple from $190 to $220, anticipating the addition of approximately 170 million new users, which could account for 15% of the company’s total revenue growth.
The analysts emphasized the significance of India’s role in Apple’s future growth, comparing it to China’s impact over the past five years. They believe that India’s potential is currently undervalued by the market.
Presently, Apple generates only $6 billion in revenue from India, while China contributes approximately $75 billion annually.
Morgan Stanley highlighted India’s favorable macroeconomic conditions for Apple, including changing demographics, economic reforms, and a thriving digitization trend.
Apple, headquartered in Cupertino, California, has significantly expanded its presence in India in recent years, strategically positioning itself in the market. In April, CEO Tim Cook met with Indian Prime Minister Narendra Modi to celebrate the opening of Apple’s first two official stores in Mumbai and New Delhi.
The company has also strengthened its manufacturing capabilities in India through partnerships with Foxconn and Pegatron. In September of the previous year, Apple confirmed plans to produce some units of the upcoming iPhone 14 in India as part of its supply chain diversification efforts.
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Author Faith Yakubu 
