Analysts Point to India As a Source of Revenue for Apple. Apple Stock Forecast 2023 Is Pretty Positive.

Apple’s shares continued to rise on Monday, reaching a new high after Morgan Stanley analysts evaluated the possibility that awaits the firm as it develops in India.

Apple’s (AAPL) shares finished up 1.7% to $193.99 on Monday, the greatest one-day percentage increase this month and the fourth consecutive day of gains. It was the first new all-time high since June 30.

Morgan Stanley analyst Erik Woodring and his colleagues, including Saurabh Mehta from the firm’s India division, restated an Overweight recommendation, the equivalent of a Buy, on Apple in a Sunday note. Apple stock forecast 2023 remains to be pretty positive. The company boosted its price objective from $190 to $220, meaning the stock may climb more than 15.5% from Friday’s closing by July 2024.

Morgan Stanley’s optimistic view originates from the firm’s prediction that India can gain more than 170 million new Apple consumers. According to estimates, income from India would expand at a compounded annual rate of more than 20% over the next ten years, reaching about $40 billion. According to anonymous sources quoted by Reuters and Bloomberg in April, income from India will be about $6 billion in 2022, while Apple reported an overall total of $394 billion.

The projection is based on Morgan Stanley’s latest AlphaWise India Smartphone Survey results, which interviewed over 3,000 urban smartphone owners.

“The survey results positively surprised us,” the team wrote, saying more people intend to buy Apple phones as perceptions about the brand improve. The upshot is that Apple has an opportunity to win customers away from the Android operating system, they said.

Based on current exchange rates and Apple stock forecast 2023, an iPhone SE, one of the most affordable versions, may cost around $600 in India, putting the phones in the luxury category of the market. According to Counterpoint Research statistics, the sector achieved a double-digit market share last year, accounting for 11% of India’s smartphone shipments.

Apple’s India expansion narrative began in April when the firm established its first shop in Mumbai, followed by one in New Delhi. According to local media, government officials have requested that Apple manufacture $50 billion in goods in India over the next five to six years as part of Prime Minister Narendra Modi’s “Make in India” program, which aims to stimulate the manufacturing sector.

On an earnings call in May, Apple CEO Tim Cook said he saw promise in India across the board, including services, rather than just iPhones.

“The average revenue per user in India is much lower for whether you’re talking about TV and movie streaming or music,” he added. “However, when you look at it over a long period, I believe there is a good opportunity across the board.”