India's Government Supports Apple with Tax Exemption Policy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Tax Policy Advantage: The Indian government announced in the 2026-27 budget that foreign companies can provide equipment to contract manufacturers in specific areas without tax risk until the 2030-31 tax year, promoting Apple's electronic manufacturing in India.
- Reduced Manufacturing Costs: The new regulation enables Apple and its contract manufacturers like Foxconn and Tata to swiftly invest in the electronics manufacturing sector, alleviating the financial burden of initial equipment purchases and accelerating production capacity enhancement.
- Competitive Market Edge: By establishing factories in 'customs-bonded' areas in India, Apple can avoid tax risks associated with equipment ownership, granting it greater flexibility and advantage in competition against the Chinese market.
- Policy-Driven Investment: The Finance Minister stated that the implementation of this policy will provide certainty for foreign companies, encouraging more international firms to invest in electronics manufacturing in India, further driving local economic growth.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AAPL is 299.69 USD with a low forecast of 230.00 USD and a high forecast of 350.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
32 Analyst Rating
19 Buy
11 Hold
2 Sell
Moderate Buy
Current: 258.280
Low
230.00
Averages
299.69
High
350.00
Current: 258.280
Low
230.00
Averages
299.69
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Indian Government Grants Major Tax Exemption to Apple
- Tax Exemption Policy: The Indian Finance Minister announced a five-year tax exemption for foreign companies supplying machinery to contract manufacturers in designated areas, expected to lower initial investment costs for Apple and others, thus promoting growth in the electronics manufacturing sector.
- Market Growth Potential: Apple has achieved strong double-digit revenue growth in India, with CEO Tim Cook noting that despite a modest market share, the influx of new customers purchasing Apple products indicates significant future growth opportunities.
- Supply Chain Strengthening: Apple is in talks with Indian chipmakers to assemble and package iPhone components locally, a move that will further enhance its supply chain in India, improving production efficiency and reducing costs.
- Stock Performance: Over the past year, Apple stock has risen by 9.21%, closing at $259.48, reflecting positive market expectations regarding its growth potential in India and reinforcing its leadership position in the electronics market.
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