⚈ Tariff benefits could boost sales, but higher margins may limit price cuts.
⚈ AAPL recently broke its downtrend, rising 8.4% in one week.
Despite being the world’s biggest company in 2025 and recording one of the strongest decade-long upsurges on record, Apple (NASDAQ: AAPL) stock has been somewhat overlooked in recent years.
AAPÑ stock hasn’t been performing as strongly as other big tech stocks with 2024 especially marking missteps such as the tardiness in joining the artificial intelligence (AI) boom, and an ill-timed decision to abandon the electric vehicle (EV) project, though it achieved a total $3.1 trillion rise between 2005 and 2025,
President Donald Trump’s trade war might help push AAPL shares into a renewed surge in 2025, as the technology giant is reportedly planning to fully move its manufacturing to India.
Why moving production to India could turbocharge AAPL stock
For years, India has been an attractive destination for American corporations seeking to relocate production away from China. The dynamic has become even more important with the start of the 2025 trade war, as the Asian country has been particularly forthcoming in seeking a deal, and the U.S. has reportedly been of a similar disposition.
The potential impact of an agreement between the United States and India, combined with Apple’s focus on the country, can be seen in the latest product pricing changes implemented by firms like Shein in response to the trade war.
In late April, Shein made headlines by increasing the price of some items by as much as 377% due to the new tariffs.
Apple having its products in a country with a significantly more favorable tariff regime could make its smartphones, computers, and other devices more attractive in comparison, thus boosting sales in the coming quarters.
Why Apple stock might not rally after a move to India
Simultaneously, the impact of the move might be underwhelming even if it is successful. The technology giant has never been known for affordable pricing, and, given how much of the business world has been operating in the current century, it is possible it would seek to increase its margins rather than bring down the costs of the products.
Furthermore, moving manufacturing to India does not solve all the issues that arose from the trade war, as it is doubtful whether all the necessary components and materials can be locally sourced. The unpredictability of the trade war could also place unforeseen roadblocks.
Lastly, as seen by the performance of one of the hottest stocks in recent years, the semiconductor behemoth Nvidia (NASDAQ: NVDA), business results can be of lower importance for stocks than the prevailing narrative.
Indeed, despite some of the blue-chip chipmaker’s core financial results, such as revenue, earnings, and profits being only two to four times greater than those of Advanced Micro Devices (NASDAQ: AMD), NVDA has substantially outperformed AMD shares and achieved a seventeen times greater valuation.
Did Apple stock break the 2025 downtrend?
While it is doubtful whether Apple will find the narrative that will enable it to add another $3 trillion to its market cap, it is evident that AAPL stock has regained some positive momentum in recent trading sessions.
The technology giant’s shares have rallied 8.41% in the last week of trading and ended the latest trading day at $209.28, above the $200 psychological level. The Monday pre-market has likewise been positive, albeit modestly, as Apple shares are, at press time, changing hands at $209.65 following a 0.18% extended session rise.
The move is especially welcome as it signals a halt to the previously prevailing downtrend, which saw AAPL stock decline 16.57% since the start of 2025.
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