India likely to be major driver of Apple’s revenue, user growth in next five years: Morgan Stanley

As Apple increases its efforts to establish a bigger presence in India, the country is likely to be a growth booster for the iPhone maker in terms of revenue and installed user base in the next five years, analysts from Morgan Stanley have said.
A Morgan Stanley analyst noted that Apple’s India business could be worth as much as $40 billion over the next ten years.
Analysts forecast (via CNBC) that over the next five years, India could account for 15% of Apple’s revenue growth and 20% of the company’s installed base growth. Apple revenue in India, which is $6 billion today, in the past five years is 2%, the report said.
It also said that the revenue growth would be the “equivalent to Apple ramping up an entirely new product category.”
“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 said.
Things that will drive growth
According to the analysts, a number of factors, including India’s improved electrification and Apple’s efforts to build a manufacturing and retail presence in the country, will be the reason for a boost in revenue and user growth.
The report also cited a survey commissioned by Morgan Stanley as saying that Indian consumers now have an increased desire and ability to purchase iPhones. However, if India fails to meet its economic and demographic growth marks, analysts said that they “wouldn’t expect Apple to be as significant of a beneficiary in India.”
Earlier in the day, Karnataka’s large and medium industries minister M B Patil said that one of Apple’s suppliers, Foxconn, has proposed to set up a Rs 8,800 crore supplementary plant in the state.
“This would create 14,000 jobs and the land required for the project is about 100 acres,” Patil said.
“Foxconn Industrial Internet (FII), a global leader & maker of network devices for IIoT-based smart manufacturing, aims to revolutionise the tech industry by developing high-quality outer covers for iPhones,” he tweeted.