India could account for 15% of Apple’s revenue growth over the next five years

Morgan Stanley analysts estimate that India could account for 15% of Apple’s revenue growth and 20% of instaledl growth over the next five years, reports CNBC.

The analysts increased their price target to US$220 and said that India could create $40 billion in revenue for Apple over the next decade. Building a stronger retail and manufacturing base in the country has been a top priority for Apple.

CNBC notes that the analysts cite a number of factors in their assessment, including India’s improved electrification and Apple’s clear efforts to build a manufacturing and retail presence in the country. A survey commissioned by Morgan Stanley suggested Indian consumers have an increased desire and ability to purchase iPhones.

Analysts did add a caveat, warning that if India fails to meet its economic and demographic growth marks, “we wouldn’t expect Apple to be as significant of a beneficiary in India.”