Apple (NASDAQ:AAPL) is intensifying its reliance on Asian manufacturing for the upcoming iPhone 17, with production efforts focused in India and China rather than the United States, according to a new report from Wedbush Securities.
In a research note led by analyst Dan Ives, Wedbush stated that recent supply chain checks throughout Asia indicate Apple’s shift toward Indian production is gaining momentum. “All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence,” the firm noted, highlighting that Apple is accelerating its India-based assembly plans.
Wedbush estimates that by fall, Apple could be producing between 60% and 65% of iPhones in India. However, the analysts emphasized that the company retains the flexibility to scale back up in China if tariff conditions shift, maintaining a dual-country production model as part of its global strategy.
The note praised CEO Tim Cook for his handling of what Wedbush called an “unprecedented supply chain situation,” crediting him with navigating the geopolitical and logistical complexities with strategic agility.
While Apple has made substantial investments in the U.S. – over $500 billion to date – Wedbush remains firm that domestic iPhone manufacturing is not a realistic near-term prospect. The firm argues that the complexity and cost of Apple’s supply chain make U.S. production economically unviable, with Ives estimating the retail price of an American-made iPhone could soar to around $3,500.
Even with potential political pressure from a future Trump administration to move manufacturing stateside, Ives labeled such a scenario “a non-starter for Cupertino,” citing years of logistical ramp-up and the drastic price implications for consumers.
Wedbush reaffirmed its Outperform rating on Apple (NASDAQ:AAPL) and maintained a $270 price target, pointing to the company’s expanding production in India, continued strength in China, and anticipated AI-related announcements at Apple’s upcoming WWDC as key drivers of future growth.