Wall Street bull Dan Ives says Apple iPhone production isn't feasible in the U.S.; Tim Cook to instead increase production in India by 60%

Apple may be getting ready to make a major shift in its global manufacturing strategy, and it’s not in the direction US president Donald Trump wants, as per a report.

Apple May Shift 60% of iPhone Production to India

Wedbush analyst Dan Ives projected that the tech giant could ramp up its iPhone production in India to as much as 60% to 65% by this fall, depending on how ongoing tariff negotiations play out, according to Benzinga.

Analyst Says US Production Not an Option

In an X (formerly Twitter) post, he highlighted that the iPhone maker might significantly increase its iPhone assembly in India in a best-case scenario, but he also mentioned that Apple could revert to a China-driven iPhone strategy depending on the tariff situation and deal negotiations, as per Benzinga. However, he emphasized that "US iPhone production not feasible," as per his X post.


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Donald Trump Pushes Back Against Apple's India Expansion

Ives' remark comes after Trump recently expressed his disapproval of Apple’s manufacturing expansion in India as he told Apple CEO Tim Cook, “I don't want you building in India,” reported Benzinga.

Apple Reassures the Indian Government

However, even after Trump's rejection of the company's strategy, Apple is said to have reassured the Indian government of its commitment to its partnership with India as a major manufacturing hub, as per the report. Benzinga's government insiders have also pointed out that there is "no change" in the tech giant's investment plans in India, according to the report.

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Apple Stock Reacts to Trade Developments

Meanwhile, Apple’s stock recently rose after the trade negotiations between the United States and China because the firm is majorly dependent on a China-focused supply chain for manufacturing iPhones, as per Benzinga.

In the last five days, the shares of Apple increased 6.26%, however, on a year-to-date basis, the shares fell 13.29%, according to Benzinga Pro data.

FAQs

Is Apple moving away from China?
Not completely. It may still rely on China depending on how tariffs and negotiations go.

Why is Apple thinking of moving iPhone production to India?
To reduce risk. Apple wants to avoid depending too much on China, especially with rising tariffs and political tensions.