Morgan Stanley expects 20% of Apple’s five-year user growth to come from India

India is likely to be a major driver of Apple’s revenue and installed-based growth in the next five years, Morgan Stanley analysts said in a note, citing the country’s ‘economic boom’ and the tech firm’s investment in manufacturing here.

The note also highlighted a new India-driven price target rise, from $190 to $220, and a bull-case valuation rising to $270. Morgan Stanley also mentioned Apple as their top pick.

The analysts forecast that India, in the next five years, can account for 15 percent of the tech major’s revenue growth, compared to 2 percent in the last five years and $6 billion at present. India can also account for 20 percent of the Apple’s installed-based growth, the analysts said.

Morgan Stanley’s revenue growth forecast of $40 billion over the next 10 years, would be as much as the tech firm ramping a new product category.

The analysts cited various factors in their assessment, such as the improved electrification in India as well as Apple’s clear efforts to develop a manufacturing and retail presence there. A Morgan Stanley-commissioned survey also highlighted that Indian consumers are more keen on and have the ability to purchase the Apple iPhones.

However, the analysts added a caveat, warning if India failed to meet its demographic and economic growth marks, they wouldn’t expect the tech firm to be as significant of a beneficiary to the country.

However, Morgan Stanley’s fundamental thesis remained 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 said, CNBC reported. CNBCTV18