Apple (AAPL, Financial) is poised to keep iPhone manufacturing hubs in India and China despite pressure from former President Trump, Wedbush says.
Wedbush analysts note that after extensive supply-chain work across Asia, Cupertino's aggressive India push has proven “a very smart strategic move” amid uncertain China tariff dynamics and Trump's recent public rebuke.
They point out that while Apple announced $500 billion of U.S. investment—primarily AI-driven initiatives—there's “no chance” of near-term iPhone assembly stateside given the “upside-down cost model” and “Herculean-like” logistics. Trump's comments came after CEO Tim Cook assured investors on the Q1 call that “the majority of iPhones sold in the U.S. will have India as their country of origin,” with Vietnam set to handle most iPads, Macs, Watches and AirPods.
Wedbush expects continued White House pressure—Press Secretary Karoline Leavitt said Trump believes U.S. assembly is possible—but deems any shift a “non-starter” for the Cupertino, Calif.–based giant. The analysts advise bulls to “look past the next three months” and anticipate an India-focused deal from the administration this fall to further cement Apple's production strategy.
Why It Matters: Maintaining Asia-based production preserves Apple's margins and mitigates China-tariff risks as global smartphone competition heats up.
