Wedbush sees India/China as iPhone production hubs for iPhone 17, not the U.S.

Wedbush analyst Daniel Ives believes Outperform-rated Apple (AAPL) has put itself in a very hedged supply chain strategy heading into iPhone 17 production this Fall. All of the firm’s work in the supply chain throughout Asia over the past few weeks gives it a high level of confidence that Cupertino’s aggressive push towards India production has been a very smart strategic move given the uncertain tariff environment facing Apple in China. Wedbush thinks Apple could ramp iPhone assembly production in India up to 60%-65% by the Fall in a best-case scenario but could easily pivot back to a China driven iPhone strategy depending on the tariff situation and deal negotiations. The firm fully expects more pressure from the Trump Administration on Apple to build iPhone production in the U.S., but this would result in an iPhone price point that is a non-starter for the company and translate into iPhone prices of $3,500 if it was made in the U.S. and this would take many years.