Apple (AAPL) is ramping up iPhone production in India, even as trade tensions grow between Washington and New Delhi over Russian oil imports. The company is now making all four iPhone 17 models at five factories in India, including two newly opened plants, according to a Bloomberg report. The expansion includes plants run by Tata Group and electronics manufacturer Foxconn, showing Apple’s biggest move yet to reduce its reliance on China.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Reportedly, the company also plans to introduce a lower-priced iPhone 17e made in India next year. The move helps Apple meet supply chain needs and protect itself from trade risks. In May, research firm Canalys estimated that iPhone shipments from India to the U.S. grew 76% as global trade restrictions loomed.
U.S. Targets India Over Oil
The timing of Apple’s move comes as ties between Washington and New Delhi are under immense pressure. U.S. Treasury chief Scott Bessent said the White House plans to “up tariffs on India,” claiming the country has gained by buying cheap Russian oil during the Ukraine war.
Earlier this month, President Donald Trump raised tariffs on India to 50% and threatened to raise them further if a peace deal fails to materialize.
What This Means for Apple
The threat raises doubts over whether Apple’s India-made iPhones could face new rules. To balance its global bets, Apple has doubled down on U.S. manufacturing with an additional $100 billion investment, bringing its total pledge to $600 billion over the next four years. The plan expands Apple’s American Manufacturing Program (AMP) and is aimed at bringing supply chains back to the U.S. and boosting local production.
The pledge may help protect Apple from trade risks while showing it can add jobs in the U.S. For now, India is playing a bigger part in Apple’s build plans, but with U.S. tariffs on the way, the company must balance its new base in India with its large spending in America.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 15 Buys, 11 Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $239.14 per share implies 3.72% upside potential.
