From Nasdaq: 2025-05-22 07:15:00

Tech analyst Dan Ives believes Apple (NASDAQ: AAPL) stands to benefit from reduced tariffs between the US and China. The iPhone, designed in California, is mainly manufactured in China, where Apple faces competition like Intel and Texas Instruments. Despite recent stock price declines, Ives maintains a bullish outlook on Apple’s potential for growth.

Apple’s heavy reliance on Chinese manufacturing leaves it vulnerable to disruptions. Ives suggests the company could explore new manufacturing options in India to mitigate risks associated with the tariff war. While the Trump administration aims to bring manufacturing back to the US, Apple’s cost-effective production strategy is likely to remain in low-labor-cost countries.

Investors may be overlooking Apple’s services revenue potential, which has been growing steadily compared to product revenue. Ives remains optimistic about Apple’s future, anticipating a significant upgrade cycle that could drive further growth. While some may be hesitant to invest in Apple, Ives sees the stock as a buy with strong potential for returns.

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Read more at Nasdaq: Dan Ives: China Tariff Truce Revitalizes Bull Case for Apple as Half of User Base Approaches Upgrade Cycle