Apple (AAPL) just walked straight into a geopolitical firestorm. President Donald Trump has publicly clashed with Apple CEO Tim Cook over Apple’s plans to move more iPhone production to India. The remarks sent Apple stock slipping 0.9 percent in early trading.
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Speaking in Qatar, Trump vented frustration over Apple’s growing footprint in India. “I had a little problem with [Apple CEO] Tim Cook yesterday. I said to him, Tim, you’re my friend. I treated you very good. You’re coming here with $500 billion but now here you are building all over India,” Trump said.
Trump Demands iPhones Be Built in the U.S. Not India
Apple reportedly plans to more than double iPhone production in India by 2026, with the goal of sourcing the majority of the 60 million iPhones sold annually in the U.S. from India.
Trump’s response was blunt. “We’re not interested in you building in India. India can take care of themselves. They’re doing very well. We want you to build here [U.S.],” Trump warned.
For Trump, forcing a Made in America iPhone would be the ultimate win for his long-standing tariff strategy aimed at reshoring U.S. manufacturing.
Analysts Say a Made-In-America iPhone Is Financial Suicide
The problem? Analysts say domestic iPhone manufacturing is fantasy at best. Wedbush analyst Daniel Ives estimates a U.S.-made iPhone would retail for $3,500 compared to $1,000 today.
Apple’s key suppliers have taken mixed approaches under tariff threats. Taiwan Semiconductor Manufacturing (TSM) is expanding U.S. operations. Foxconn, Apple’s main assembly partner, has largely abandoned a much-hyped $10 billion Wisconsin plant once championed by Trump in 2017.
Apple Shifts Supply Chain as Tariff Threat Looms
Apple is already bracing for impact. In its earnings call this month, Tim Cook told analysts shifting production from China to India and Vietnam would add around $900 million in costs for the June quarter.
Trump’s April tariffs slapped a 26 percent duty on Indian imports, but that penalty was paused for 90 days to allow negotiations. Chinese goods were also on track for a crushing 145 percent tariff until a last-minute deal trimmed it to 30 percent.
Is Apple Stock a Good Buy?
On TipRanks, Apple holds a Moderate Buy rating. Out of 29 Wall Street analysts covering the stock in the past three months, 17 rate it a Buy, eight call it a Hold, and four recommend a Sell. The average 12-month AAPL price target is $228.65, which points to an 8.36% upside from the current price of $211.
The most bullish analysts see the stock climbing as high as $300, while the most cautious have a low estimate of $170.62. Despite some near-term uncertainty, analysts see Apple as a relatively safe harbor in an unpredictable tech sea.
