Well-Known Analyst Says Apple Inc. (AAPL) Is Enjoying a "Dream Scenario"

The Trump administration's 90-day tariff pause is "a dream scenario" for Apple Inc. (AAPL), Wedbush Securities analyst Dan Ives stated recently.

The analyst kept a $270 price target and an Outperform rating on AAPL stock.

According to Ives, the tech giant can pursue a number of attractive strategic options going forward.

Apple Inc. (AAPL)'s Potential Options, According To Ives

By this fall, the iPhone maker could manufacture 60% to 65% of its smartphones in India, Ives believes. Indeed, he now has " a high level of confidence” that Apple is accelerating the transfer of its manufacturing operations to the South Asian country.

On the other hand, Apple Inc. (AAPL) " could easily pivot back to a China driven iPhone strategy," Ives stated. The analyst believes that AAPL's actions in this area will be based " on the tariff situation and deal negotiations."

Apple Inc. (AAPL) Won't Make iPhones in the U.S., Ives Believes

Despite President Donald Trump's calls on Apple Inc. (AAPL) to manufacture its products in the U.S., Ives says there is “no chance that iPhone production starts to happen in the U.S. in the near term.” The device's large supply chain and the high cost of making iPhones will prevent the firm from making a significant number of the smartphones in America, Ives stated.

If AAPL did manufacture iPhones in the U.S., it would charge consumers $3,500 for them, Ives asserted.

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Disclosure: None. This article is originally published at Insider Monkey