A report by Apple Inc. (NASDAQ: AAPL) contract vendor Foxconn will start collecting products, including the iPhone X, in India in the coming year, increasing confidence in Apple's stock, D.A. Davidson, who repeated his purchase rating on Apple on Friday.
D.A. Davidson analyst Tom Forte repeated a purchase estimate at Apple with a price of $ 280.
Apple shares have withdrawn almost 30 percent since the quarterly report for September, while the S & P 500 has dropped only 12 percent over that time.
Part of the pullback is related to concerns over tariffs because of Apple's confidence in manufacturing in China, Forte says in a Friday fight. (See the analyst's track record here.)
But the report that Foxconn, the world's largest contract electronics maker, will begin to make the new iPhones in India increases the belief that Apple is among the companies best placed to move production out of China and avoid rates, the analyst said. Foxconn is the largest iPhone installer.
"We are not surprised at this news and fully expect other Apple and other covered company manufacturers to continue to move either share or their entire production out of China," says Forte. "The article also noted that lower-end models, including SE and 6S, are already produced in India."
The Reuters report said the Taiwanese contractor will invest about $ 350 million to expand a plant in Sriperumbudur, a city in southern India's Tamil Nadu state. It is not yet clear whether the iPhone assembly work is being moved from the Foxconn factories in China, elsewhere, or represents additional production. C
About half of the world's iPhones are made by Foxconn on a complex near Zhengzhou, China.
Foxconn is also planning a new factory in Vietnam, according to a report by Vietnamese state media earlier this month. The company has said that the tension between the US and China over tariffs is the biggest challenge.
] Apple traded down 0.56 percent at $ 1
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