Apple Inc.’s Promising Growth Potential in India

by Warren Seah

According to Morgan Stanley analyst Erik Woodring, Apple Inc. has an exciting opportunity to expand its presence in the vast Indian market. Woodring predicts that Apple’s business in India could grow by seven times in the next 10 years, resulting in an impressive $40 billion in annual revenue.

Currently, India only contributes around $6 billion to Apple’s overall revenue, a mere 2% increase over the past five years. In contrast, the greater China market has brought in $75 billion for the tech giant, positioning it as a significant source of growth.

However, Woodring believes this is about to change. Recent investments in brand awareness, local manufacturing, and affordability programs, along with India’s economic boom and increasing digitization, create a favorable environment for Apple’s expansion. These developments set the stage for India to become Apple’s next growth frontier.

Woodring anticipates that India will drive 15% of Apple’s revenue growth in the next five years while also adding over 170 million users to Apple’s ecosystem within the next decade. This promising growth potential underscores the valuable opportunity Apple has in leveraging India’s burgeoning market.

A Promising Future for Apple in India, According to Citi

Citi, a prominent financial institution, believes that Apple’s prospects in India are more favorable than ever before. The Indian economy is projected to double its gross domestic product (GDP) over the next decade, which is a key factor contributing to this positive outlook.

According to Citi analyst Woodring, Indian consumers will soon have increased spending power, allowing them to afford luxury devices like Apple products. The number of Indian households earning over $35,000 annually is predicted to grow fivefold by 2030, while per-capita income could also more than double during the same period.

Woodring argues that these developments will create an ideal environment for the growth of the Indian smartphone market. Experts estimate that the total addressable market for smartphones in India will triple, reaching $90 billion by 2032.

Apple itself has demonstrated its commitment to India. In 2020, the company launched its online store in the country, and earlier this year, it opened its first two retail stores there.

Taking all these factors into account, Woodring raised his price target for Apple shares to $220 from $190. Furthermore, he established a new bull-case scenario, with a price target of $270, which includes the expectation of $85 billion in revenue from India and an additional 170 million Indian users in the coming decade.

This news is undoubtedly exciting for Apple investors and enthusiasts, as it signifies the company’s growing presence and potential in the thriving Indian market.

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