Apple Scouts Indian Suppliers for iPhone Manufacturing Equipment

iPhone maker Apple (AAPL) appears to be going all-in on making India its next iPhone manufacturing hub, shifting its focus away from China. According to a Business Standard report, Apple is scouting Indian companies to domestically source iPhone manufacturing equipment and supply it to its production units in the country.

The report noted that a senior official from India’s Ministry of Electronics and Information Technology also confirmed the development. The move marks a significant step for Apple, which has been repeatedly warned by U.S. President Donald Trump to stop expanding in India and bring manufacturing back to the U.S.

Apple Doubles Down on ‘Make-In-India’

Interestingly, China has also been Apple’s largest supplier of iPhone capital equipment and machines, as well as its primary assembly hub. However, following the escalation of the U.S.-China trade war and the imposition of hefty tariffs on Chinese imports, Apple quietly started shifting its base to India. Apple has been hinting at making India its manufacturing hub for 100% of iPhone shipments to the U.S., while continuing to use its China manufacturing base for iPhones destined for other countries.

Notably, importing machinery from China is facing extended delays at ports. In this scenario, Apple’s plan to source capital equipment locally eliminates business risk and ensures efficient production and timely supply of iPhones. Apple’s largest supplier, Foxconn, is also shifting its focus to India and plans on investing $1.5 billion to establish a new component factory in Tamil Nadu. In addition to Foxconn, Apple also been sourcing components from Pegatron and Tata Electronics in India.

In the meantime, Apple is planning on using generative AI to enhance its custom-made chip design technology. Additionally, news about Apple’s long-awaited folding iPhone is making the rounds, with media reports quoting analyst Ming-Chi Kuo as saying that the display will be made by rival Samsung (SSNLF). According to these reports, Samsung plans to produce nearly eight million foldable panels in 2026 for Apple.

Is Apple Stock a Buy, Sell, or Hold?

Analysts remain divided on Apple’s long-term stock trajectory, mainly due to uncertainty surrounding the impact of tariffs on the company. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 16 Buys, nine Holds, and four Sell ratings. Also, the average Apple price target of $226.94 implies 15.4% upside potential from current levels. Year-to-date, AAPL stock has lost 21.3%.

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