Apple’s market cap is currently over $3 trillion and analysts at Morgan Stanley believe that this value will continue to rise. They have raised their price target to $220, despite Apple shares being slightly down at $193.73. The reason for their optimism is the belief that Apple can turn India into a major growth market, much like they did with China. India, which is vying with China for the title of the most populous country, is now a top priority for Apple. The company hopes to tap into the growing middle class in India and expects that more people will start using iPhones, iPads, and other Apple devices. In addition, Apple is investing billions of dollars into expanding their production in India. According to the latest report from Morgan Stanley, India is expected to contribute to 15% of Apple’s sales growth over the next five years. The analysts also anticipate a 20% increase in the installed base of Apple devices due to India. However, it is important to note that Apple has only managed to achieve a two percent sales growth in India over the past five years, compared to China where they have experienced much greater success. Morgan Stanley predicts that India will bring in 170 million new Apple customers in the next decade and expects that by 2032, 10% of all Apple users will come from India. Recent surveys suggest that Indian consumers are increasingly interested in high-end devices rather than refurbished models or entry-level iPhones. Additionally, a large percentage of Apple users remain loyal, with 82% expected to stay within the Apple ecosystem, compared to only 60% for Samsung users. Overall, Morgan Stanley believes that India will be as important to Apple’s growth as China has been in the past, a fact that they believe is currently undervalued by the market.
