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Tighter restrictions in India could attract companies such as
Apple
far from China. And if Apple can increase its market share in India, it could generate $ 4.6 billion in sales over the next few years, according to an analyst from Evercore ISI.
The story back. Apple's shares (ticker: AAPL) have risen 30% this year, despite concerns over the US-China trade war and slowing iPhone sales.
Bulls highlight the company's investment in so-called services, which could generate more reliable revenue. Last week, Evercore ISI Amit Daryanani noted that the company's new credit card could help its Apple Pay platform generate revenue growth in the United States.
What's up. Daryanani wrote Monday in a note that he thought the recent changes in foreign direct investment in India would bring Apple to [its] online and physical presence in India in the coming quarters. "
The changes allow foreign companies to operate an online store with no physical presence and reduce local procurement requirements, he noted.
"Apple has spent years lobbying for these two changes, and the Indian government's continued efforts to attract foreign companies should help Apple expand its customer base in the fast-growing country," he wrote.
Look forward. Daryanani estimates that 80% of smartphone sales in India are priced below $ 200, although premium smartphones are on the rise.
If Apple can "offer a broader range of products and services without pricing," it sees a positive potential. If the company manages to increase its market share of 4% in India, against 9% in China, it could see its turnover increase of $ 4.6 billion and its earnings of 65 cents per share.
"We believe that one of the most striking features of this dynamic and the ability of AAPL to function [its] The flagship stores in India will be brand awareness and a better way to display not only iPhones, but also the wider ecosystem, "he said.
The Apple stock fell 1.5% to $ 205.70 on Tuesday. the
S & P 500
the index fell 0.7%.
Write to Connor Smith at [email protected]
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