Apple (NASDAQ:AAPL) CEO Tim Cook commits to ramping up investments in India. Soon after meeting the Indian Prime Minister Narendra Modi, Cook tweeted that Apple is committed to expanding operations and investing across the country. However, this shouldn’t be a surprise, as the Apple CEO said during the Q1 conference call in February that he is “very bullish on India.”
Apple’s boss was in India to inaugurate the company’s first retail store in Mumbai.
Though India continues to contribute little to Apple’s overall sales, the country has emerged as a bright spot for the iPhone maker and has been clocking double-digit revenue growth.
During the Q1 conference call, Cook highlighted that Apple achieved record sales in India and registered strong double-digit growth year-over-year.
Apple brought its online store to India in 2020. Moreover, it just opened two retail stores in the country. India is also a key market for Apple in terms of production, as it targets diversifying its supply chain beyond China.
As Apple expands its operations in India, Wedbush analyst Daniel Ives sees this as a positive development from the point of view of production and retail expansion. Two days ago, ahead of its first store launch in India, Ives said that he expects Apple’s top line from the Indian market to reach $20 billion by 2025.
It’s worth highlighting that Apple generated revenue of about $6 billion in India in the last fiscal year that ended in March.
What’s the Prediction for AAPL Stock?
While the slowdown in consumer spending amid macro weakness has weighed on Apple’s hardware business, its dominant positioning in the premium smartphone market and strength in the Services segment could continue to support its financials and cap the downside risk to its revenue and earnings.
AAPL stock carries a Strong Buy Consensus rating on TipRanks, reflecting 24 Buy, four Hold, and one Sell recommendations. Apple stock has gained over 29% year-to-date, which is why analysts’ price target of $174.86 implies a limited upside potential of 4.31%.
