11:37 AM EDT, 05/16/2025 (MT Newswires) -- Apple ( AAPL ) will likely keep iPhone production in India and China, despite pressure from President Donald Trump to shift manufacturing of the smartphone to the US, Wedbush Securities said in a Friday client note.

The brokerage said that the tech giant could ramp up production of the iPhone in India by up to 60% to 65% by the fall in a "best-case scenario," but could pivot back to China depending upon trade talks.

During a quarterly earnings call at the beginning of this month, Apple ( AAPL ) Chief Executive Tim Cook said he expected the majority of iPhones sold in the US to have India as their source country for the ongoing three-month period, and China to be the country of origin for a "vast majority" of product sales outside the US.

Cook's comments came as the US and China raised duties on each other's goods. However, Washington and Beijing recently agreed on a 90-day suspension of tariffs.

Apple's ( AAPL ) push toward India has been a strategic move given uncertainty around tariffs on China, while trade talks with Beijing is "a major positive" for the company, Wedbush analysts led by Daniel Ives wrote in the note.

The brokerage expects the Trump administration to increase pressure on Apple ( AAPL ) to build iPhones in the US, but it said that's unlikely to materialize due to the associated costs and "Herculean-like supply chain logistics needed for such an initiative." If production were to move to the US, it could command a price tag of about $3,500 for an iPhone, according to Wedbush.

Trump said Thursday that he asked Cook to stop producing in India, according to CNBC.

Apple ( AAPL ) in February announced plans to invest more than $500 billion in the US over the next four years, including for an artificial intelligence server factory in Texas.

The brokerage maintained its outperform rating on Apple's ( AAPL ) stock and a 12-month price target of $270, reflecting its "incremental confidence in the India and China iPhone supply chain situation."

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