Apple gains as Morgan Stanley sees India as next big market
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Apple (NASDAQ:AAPL) shares gained more than 1% on Monday as investment firm Morgan Stanley said it has seen several instances of positive traction for the U.S. tech giant in India, which it believes could account for 20% of the company's installed base over the next five years.
A group of analysts noted that Apple (AAPL) - which the firm rates overweight - is gaining market share, has "positive" iPhone mix shift and a strong ecosystem effect - with the company growing more than seven times over the next 10 years to roughly $40B in revenue.
The firm, which also bumped its price target on Apple (AAPL) to $220 from $190, added that the Tim Cook-led company could add as much as 170M new users, with 15% of the company's total revenue growth. 
"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 wrote.
India accounts for just $6B of Apple's (AAPL) revenue at present, whereas China accounts for roughly $75B of the company's annual sales. 
The analysts said the macro backdrop in India is "more favorable than it's ever been" for Apple, citing positively changing demographics, new economic reforms and a growing digitization boom. 
Cupertino, California-based Apple (AAPL) has expanded significantly into India in recent memory, which some analysts have called a "strategic poker move."
In April, Apple (AAPL) CEO Tim Cook met with Indian Prime Minister Narendra Modi while on a trip to celebrate the company's first two official stores in the country, in Mumbai and New Delhi.
The company has also boosted producing its devices in India via its manufacturing partners, including Foxconn and Pegatron. 
This past September, Apple (AAPL) confirmed it would be producing some iPhone 14 units in India as it diversifies its supply chain.
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