Apple (NASDAQ:AAPL) ramped up the assembly of its iPhones in India to be worth $14 billion over the last fiscal year, according to a Bloomberg exclusive report. Effectively, the tech giant is doubling its production in India, thus diversifying away from China.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score, a data-driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
The Cupertino-based company assembles 14% or 1 in 7 of its devices in India. This indicates that Apple is intensifying its efforts to reduce its reliance on China for manufacturing iPhones.
Furthermore, Apple’s move to reduce its dependence on China is driven by the rising trade tensions between the U.S. and China, which could potentially impact Apple’s performance in the country. Moreover, the company is facing declining iPhone sales, with sales falling by 24% year-over-year in the first six weeks of the year due to increasing competition from companies like Huawei.
Is Apple a Buy or Sell Right Now?
Analysts are cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 16 Buys, 11 Holds, and one Sell. Year-to-date, AAPL has declined by more than 10%, and the average AAPL price target of $202.84 implies an upside potential of 19.5% at current levels.
