iPhone 17 to be made in India and China, not the U.S.- Wedbush’s Ives

Investing.com -- Apple is doubling down on its production strategy for the iPhone 17, with manufacturing centered in India and China, not the United States, according to a new note from Wedbush analysts led by Dan Ives.

“All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence” that Apple’s strategy to shift production to India is accelerating, the firm said. 

Wedbush estimates Apple (NASDAQ:AAPL) could ramp iPhone assembly in India to between 60% and 65% by this fall, though it could “easily pivot back to a China-driven iPhone strategy depending on the tariff situation.”

Wedbush praised CEO Tim Cook for managing what it called an “unprecedented supply chain situation” in a “hall of fame moment.”  

The recent pause in U.S.-China tariff tensions provides Apple with “a number of strategic options” for balancing production between the two countries.

Despite Apple’s massive U.S. investments—$500 billion and counting—Wedbush sees “no chance that iPhone production starts to happen in the U.S. in the near term,” citing a “Herculean-like supply chain” and cost model that would drive iPhone prices to about $3,500.

Ives also noted that Apple could face increased pressure from the Trump administration to manufacture in the U.S., but any such move would be “a non-starter for Cupertino and translate into iPhone prices of ~$3,500 if it was made in the US and this would take many years.”

Wedbush reiterated its Outperform rating on Apple, with a $270 price target, citing confidence in the India-China supply chain strategy and the upcoming AI developments expected at WWDC.