Evercore has reaffirmed its Outperform rating and $250 price target on Apple (AAPL, Financial), highlighting the company's efforts to manage supply chain risk amid rising U.S.–China trade tensions. Analysts led by Amit Daryanani pointed to Apple's diversified production footprint as a key buffer against targeted tariffs.

Although Apple still relies heavily on China for manufacturing, the analysts noted that the company has steadily expanded production into India and Vietnam. According to Evercore's estimates, roughly 35% of U.S. iPhone and iPad demand could now be supported from India, with the rest still met by Chinese facilities. For wearables and Macs, about half the volume could come from Vietnam.

Apple has thus far secured exemptions from China's 100%+ reciprocal tariffs, but the U.S. government's Section 232 probe could extend to electronics. If broader tariffs are implemented, Evercore believes Apple would raise prices and work with suppliers to share added costs.

The team emphasized that domestic iPhone production remains unlikely. Higher labor costs in the U.S. could push manufacturing expenses up by more than 50%, making such a move financially impractical—even in the event of a 50% global tariff baseline.

Despite uncertainty, Evercore sees Apple's scale and flexibility as long-term advantages.