Morgan Stanley Raises Apple Target Price to $220... "India is the Key" (Update)

Morgan Stanley Outlook
"India Accounts for 15% of Apple's Sales Growth and 20% of User Growth Over 5 Years"

U.S. investment bank Morgan Stanley has identified India as the key driver of Apple's growth over the next five years. It also raised Apple's target stock price from $190 (approximately 241,000 KRW) to $220 (279,000 KRW).

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On the 17th (local time), Morgan Stanley stated, "India will account for 15% of Apple's revenue growth and 20% of user growth over the next five years."

India's share of Apple's revenue has been 2% over the past five years. In terms of amount, it currently stands at $6 billion (7.614 trillion KRW). Morgan Stanley explained, "India's revenue is expected to increase to $40 billion (50.76 trillion KRW) over the next 10 years," adding, "This is equivalent to Apple expanding into a completely new product category."

The progress of electrification in India, Apple's investment in manufacturing in India, and the improvement in local consumers' desire and ability to purchase iPhones were cited as the basis for this outlook.

Morgan Stanley said, "Just as China was over the past five years, India will be important to Apple's growth algorithm for more than the next five years," adding, "The current market is undervalued."

India is expected to surpass China this year to become the world's most populous country. Its economic growth rate is also significant, recording around 6% annually, showing great potential. It has even introduced 5G communication services. Apple has been making efforts to capture the market, including opening its first Apple Store in India last April.

However, Morgan Stanley added that if India fails to meet its economic and demographic growth prospects, Apple may not benefit significantly from India.

Last month, U.S. Wedbush Securities also raised Apple's target stock price to $220. Daniel Ives, an analyst at the firm, said, "Apple has overcome challenges such as China's supply chain issues and economic slowdown over the past 18 months and has once again approached the $3 trillion market cap threshold," adding, "Over the next 12 to 18 months, Apple will head toward a renaissance of growth."

He particularly highlighted the large-scale upgrade opportunity centered on the iPhone 14 and the iPhone 15, which will be released during the mini super cycle (a period of booming sales). Analyst Ives pointed out that Apple's services business is approaching $100 billion annually (approximately 126.7 trillion KRW) with double-digit growth compared to the previous year. Regarding the 'spatial computer' headset 'Vision Pro' unveiled by Apple last month, he gave a favorable evaluation, saying, "The core is to build the Apple app ecosystem and stronghold, and Vision Pro and the App Store could be the first step for Apple to build a generative artificial intelligence (AI) app ecosystem."

As target price upgrades for Apple continue in the securities industry, Apple's stock price closed at $193.99 (246,000 KRW), up 1.73% from the previous trading day on the New York Stock Exchange today.

This content was produced with the assistance of AI translation services.