India will account for 20% of Apple’s user growth over the next five years, Morgan Stanley estimates

India will possible be a serious driver of Apple’s five-year income and put in base development, Morgan Stanley analysts stated in a notice Monday, citing Apple’s funding in manufacturing in India and the nation’s “economic boom.”

The notice additionally mirrored a brand new India-driven value goal improve, from $190 to $220, with a bull-case valuation elevated to $270. Morgan Stanley additionally reiterated Apple as their Top Pick.

Morgan Stanley analysts forecast that over the following 5 years, the nation might account for 15% of Apple’s income development — in distinction to 2% up to now 5 years and $6 billion right now — and 20% of the corporate’s put in base development.

The income development, which Morgan Stanley forecasts at $40 billion over the following 10 years, could be the “equivalent to Apple ramping an entirely new product category.”

The analysts cite quite a few components of their evaluation, together with India’s improved electrification and Apple’s clear efforts to construct a producing and retail presence within the nation. A survey commissioned by Morgan Stanley prompt Indian shoppers have an elevated want and skill to buy iPhones.

Analysts did add a caveat, warning that if India fails to satisfy its financial and demographic development marks, “we wouldn’t expect Apple to be as significant of a beneficiary in India.”

But Morgan Stanley’s elementary thesis is bullish. “All-in, this means that India will be just as important to Apple’s growth algorithm over the next 5+ years as China was in the last 5 years, something we believe the market underappreciates today,” the analysts stated.