Wedbush: If the US and India reach a trade agreement, it will benefit Apple and its supply chain

Zhitong
2025.05.27 12:33
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Wedbush analysts stated that if the United States and India reach a trade agreement, it will have a positive impact on Apple and its supply chain. Wedbush maintains an "outperform" rating on Apple, with a target price of $270. Trump expressed dissatisfaction with Apple's production of iPhones in India and threatened to impose tariffs, which could affect Apple's production diversification plans

According to the Zhitong Finance APP, investment bank Wedbush stated that if reports are true, the United States is nearing a broad trade agreement with India, which would have a positive impact on Apple (AAPL.US) and its supply chain. Wedbush analysts noted in a client report: "We still believe that one of the most important U.S. trade and tariff negotiations currently highly focused on by market and technology investors is the agreement with India. Given India's technical workforce, highly skilled engineering talent, and supply chain infrastructure, if the U.S. announces a trade agreement with India in the coming weeks, we remain confident that one of the biggest beneficiaries will be Apple and its iPhone supply chain capabilities." Wedbush maintains its "outperform" rating on Apple, with a target price of $270.

This analysis from Wedbush comes as Apple faces criticism from U.S. President Trump for increasing iPhone production in India. Last Friday, Trump posted on social media: "I told Apple's Cook a long time ago that I hope the iPhones sold in the U.S. are made in the U.S., not in India or any other place. If not, Apple must pay at least a 25% tariff to the U.S."

According to market research firm Counterpoint Research, approximately 20% of iPhones sold in the U.S. market are currently imported from India. Apple has been ramping up its production efforts in India. Earlier reports indicated that Apple plans to shift all iPhone production for the U.S. market to India as early as next year to avoid Trump's tariff risks.

However, Trump is not satisfied with this. In addition to threatening to impose tariffs on Apple last Friday, Trump also stated on May 15 that he had asked Apple CEO Cook to stop building factories in India. Trump said: "He is building factories all over India, but I don't want him to build factories in India."

Trump's threats against Apple could severely impact the company's production diversification plans. For Apple, shifting iPhone production back to the U.S. faces numerous challenges, such as high labor costs and inadequate supply chain support, which would significantly increase Apple's production costs. According to Wall Street analysts' predictions, if the Trump administration insists on this policy, the price of iPhones is expected to rise sharply, with "Made in America" iPhones potentially soaring by at least 25%, reaching as high as $3,500, nearly double the current price

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