Wedbush analysts call Apple’s India move “strategic poker.”2023

Wedbush analysts with an Outperform rating and $205 price target expect Apple (NASDAQ:AAPL) India revenue to reach $20 billion by 2025.

“This week marks a significant strategic move for Cupertino as Cook will cut the red ribbon on the first India retail stores in Mumbai and New Delhi,” they said.

The analysts noted that the tech giant’s retail approach will focus on obtaining new consumers and “importantly converting Samsung/Xiaomi/vivo/OPPO customers into Apple iPhone customers over time” in the Android-heavy market.

“While market share in India is sub 10% today, we believe Apple, through its unmatched marketing and brand presence, will be able to turn India into an incremental growth catalyst as the anniversary iPhone 15 hits the market in September timeframe,” analysts said.

Apple is considering iPhone production in India after the COVID-19 pandemic in China.

“As Foxconn/Apple put more skin in the game on the iPhone production front within India, this will go hand in hand with a bigger retail presence within India as seen this week, which mirrors the early days of the China penetration strategy going back a decade,” concluded Ives.

“Apple has tangentially pursued the India market for years with modest success as India revenue is barely $6 billion (less than 2% of global revenues) today with minimal presence in the country. Apple is now aggressively looking at India for production and retail development, which we believe will be a strategic poker play for Cupertino that may ramp yearly revenue to $20 billion in India by 2025.

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