April 20, 2023

By Nigam Arora & Dr. Natasha Arora

Signal(s) to enter, add, reduce, exit, hold or change.

Apple (AAPL) derives about 20% of its sales from China.  A majority of iPhones are manufactured in China.  Due to geopolitics, Apple’s dependence on China has added significant risk to Apple stock.  The good news is that Apple is aiming to capitalize on India’s population of 1.4 billion to reduce its dependence on China.

Shift From China

There are two important concepts here:

• India’s population has now surpassed China.
• Until recently all iPhones were manufactured in China.  Apple is trying to diversify iPhone manufacturing out of China due to geopolitical tensions between the U.S.