Apple's India Game Plan Looks Smarter As Tariff Heat Rises - Analyst Highlights 4 Stocks That Could Benefit

As Washington cranks up the tariff pressure, Apple Inc. (NASDAQ:AAPL) may have already played its smartest card: doubling down on India for assembly and investing deeper into U.S. component suppliers.

While the idea of building iPhones in America sounds good on paper, JPMorgan analyst Samik Chatterjee warns it's not that simple.

“The U.S. currently grapples with infrastructure and workforce limitations,” he notes – the same key ingredients that helped China become the manufacturing powerhouse it is today. Chatterjee estimates that entirely shifting iPhone assembly to the U.S. could trigger a painful 30% price increase for consumers if a 20% tariff on China is implemented.

Read Also: If You Invested $10K In Apple Stock 10 Years Ago, How Much Would You Have Now?

Apple’s Best Move: Expand In India

Rather than chasing a moonshot strategy, Chatterjee believes Apple's best move is to turbocharge what it's already doing: expand in India. “Scaling further in India to address all local U.S. demand makes the most sense,” he argues, pointing to India's large skilled workforce, favorable government policies, and the ability to scale efficiently without blowing up costs.

That doesn't mean Apple will ignore the U.S. altogether. Instead, it is expected to invest more heavily in U.S.-based component makers. According to Chatterjee, this could include processors from Taiwan Semiconductor Manufacturing Co's (NYSE:TSM) Arizona fabs, display glass from Corning Inc (NYSE:GLW), and optical sensors from suppliers like Coherent Corp (NYSE:COHR) and Lumentum Holdings Inc (NASDAQ:LITE) – allowing Apple to meet political pressure without wrecking its margins.

Is The ‘Made-In-America’ iPhone A Distant Dream?

A fully ‘Made-in-America’ iPhone remains a distant dream. But a “Made-in-India, Powered-by-U.S.-Components” iPhone? That's the more likely—and smarter—reality as Apple looks to stay ahead in a world where geopolitics are increasingly shaping tech strategy.

Read Next:

• Analyst Casts Doubt On Apple’s Reported Move To Shift iPhone Production To India Amid Rising China Tariff Pressures: ‘Doesn’t Solve All The Problems’

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