India market is booming! Goldman Sachs: Apple stock price will continue to rise.

After Morgan Stanley analysts quantified the opportunities for Apple's expansion in India, Apple's stock price continued to rise on Monday, reaching a record high.

On Monday, Apple's stock price rose 1.7% to $193.99, marking the largest single-day increase this month and the fourth consecutive day of gains. This is the first record high since June 30.

Morgan Stanley raises Apple's target price

In a report on Sunday, Morgan Stanley analysts Erik Woodring and Saurabh Mehta from the India team reiterated their overweight rating on Apple, equivalent to a buy rating.

Morgan Stanley raised Apple's target price from $190 to $220, implying a potential increase of over 15.5% from last Friday's closing price by July 2024.

Morgan Stanley is optimistic about Apple because it expects to add 170 million Apple users in India.

Analysts say that in the next 10 years, Apple's revenue in India could grow at a compound annual growth rate of over 20%, reaching nearly $40 billion.

India's contribution to Apple's revenue growth in the next five years will reach 15%.

Huge potential in the Indian market

Woodring predicts that Indian consumers will have stronger purchasing power and be able to afford expensive devices. By 2030, the number of Indian households with an annual income exceeding $35,000 will quadruple, and per capita income will more than double.

Reuters and Bloomberg reported in April, citing unnamed sources, that Apple's revenue in India will reach nearly $6 billion in 2022, while Apple's total revenue is $394 billion.

This forecast is based on the latest AlphaWise India Smartphone Survey data from Morgan Stanley, which surveyed over 3,000 urban smartphone users.

"The survey results surprised us," the team wrote, as more and more people intend to buy Apple phones with increased brand awareness. Apple has the opportunity to attract customers from the Android operating system.

The iPhone SE is one of the lowest-priced models, with a price of around $600 in India at the current exchange rate, targeting the high-end market. Counterpoint Research data shows that smartphone market share reached double digits for the first time last year, accounting for 11% of India's smartphone shipments.

Not just iPhones

In April of this year, Apple opened its first store in Mumbai, followed by a flagship store in New Delhi, marking the beginning of Apple's growth story in India.

According to local media reports, government officials proposed that under Prime Minister Modi's "Make in India" plan, Apple should produce $50 billion worth of products in India annually within the next five to six years, aiming to boost the manufacturing industry. In May of this year, Apple CEO Tim Cook stated during a conference call discussing Apple's performance that he believes the opportunities in India are comprehensive, not just limited to the iPhone, but also in the service sector.

He said, "It's clear that the average revenue per user in India is much lower, whether it's for television, streaming movies, or music. But if you look at the long term, I think it's a great opportunity."