10:53 AM EDT, 05/16/2025 (MT Newswires) -- Apple ( AAPL ) is taking a strategic approach to iPhone 17 production by expanding in India, driven by concerns over tariffs in China, Wedbush said in a note Friday.

Apple ( AAPL ) may increase iPhone assembly in India to as much as 60% to 65% by fall if conditions are favorable, but can easily return to relying on China depending on future tariff negotiations, the investment firm said.

Despite Apple's ( AAPL ) massive US investment in artificial intelligence, a US-based iPhone production remains unlikely due to high costs and complex logistics, which could push iPhone prices to around $3,500, Wedbush analysts noted.

The company is expected to face pressure from the Trump administration to produce iPhones domestically, but the cost model makes it impractical in the near future, according to the note.

The long-term outlook for Apple ( AAPL ) remains positive, driven by its large iPhone and iOS user base and a strong Services business, which alone is valued at around $2 trillion, Wedbush said.

Apple ( AAPL ) is expected to reveal a clearer AI strategy at the Worldwide Developers Conference in June, possibly including a partnership with Alibaba ( BABA ) in China, in an attempt to renew growth in the region, according to Wedbush.

Wedbush maintained an outperform rating and a $270 price target on Apple's ( AAPL ) stock.

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