Potential Resistance from China
As Apple expands iPhone production in India, some analysts argue that shifting assembly operations from China to India is unrealistic.
According to CNBC on April 26 (local time), Craig Moffett, a well-known mobile sector analyst at market research firm MoffettNathanson, shared this outlook in a memo sent to clients the previous day.
Previously, the Financial Times (FT) reported that Apple plans to shift its production base from China to India, aiming to manufacture all iPhones sold in the United States in India by the end of next year.
Moffett stated, "Even if the assembly process is relocated, the supply chain remains deeply rooted in China," and predicted, "The relocation of assembly operations will also face resistance from China." He added, "Since iPhone components are manufactured in China, it will be difficult to resolve cost issues arising from tariffs."
He also noted, "The global trade war impacts both costs and revenues," and projected, "While relocating assembly might alleviate some cost issues, the revenue side could remain a bigger problem."
Based on this analysis, Moffett recently lowered Apple's target stock price from $184 per share to $141. This is 33% lower than the closing price on April 25, and is the lowest target price suggested on Wall Street.
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