Apple (AAPL, Financial) has kicked off iPhone production at a new Tata Electronics plant in Hosur, India, with Foxconn's $2.6 billion Bengaluru facility set to roll out its first units in May.

The Tata plant, which started operations this month, can crank out 300–500 older-model iPhones per hour on a single assembly line, while Foxconn's initial line in Karnataka will soon mirror that pace. Taken together, India's emerging iPhone hubs shipped a record 600 tons—roughly $2 billion worth of devices—to the U.S. in March, with Foxconn accounting for $1.3 billion.

Foxconn plans to assemble 25 million–30 million iPhones domestically this year, more than double its 2024 output, and Apple reportedly aims to shift U.S.-sold iPhone assembly entirely to India by 2026. When fully built out in December 2027, the Foxconn plant is slated to create 50,000 jobs and add multiple assembly lines.

These moves come as Apple races to diversify its supply chain beyond China, where rising U.S. tariffs and geopolitical tensions have clouded the outlook. Though the Trump administration has temporarily exempted smartphones from U.S. tariffs, Commerce Secretary Gina Raimondo has warned that exclusions could end, reinforcing Apple's urgency to spread production risk. India's focus on higher-volume, older models gives Apple a foothold while it fine-tunes newer iPhone lines back in China.

Investors should care because boosting Indian output can shield Apple from tariff shocks and provide a springboard for future growth, but the transition carries execution risks: quality control, logistics bottlenecks and workforce training could all trip up production targets. GuruFocus's Forecasts tool suggests that supply-chain diversification is a key factor in AAPL's long-term valuation, offsetting concerns about peak iPhone demand.

With first-quarter results out and Q2 guidance due in late July, markets will be watching for any mention of Indian volumes in Apple's next earnings call. Meanwhile, Apple's World Wide Developers Conference in June could offer the first public showcase of devices “Made in India,” cementing the country's role in the iPhone saga.

Apple's GuruFocus Value (GF Value) stands at $193.95, yet the stock currently trades at $210.77—reflecting a premium of roughly 8.4%. More conservative models, however, paint a different picture. The earnings power model values Apple at just $60.97, indicating that cautious assumptions around future cash flows severely compress the company's implied profitability.

Meanwhile, its net current assets come in at a negative $9.58, reinforcing the idea that Apple's book value is heavily reliant on intangible assets. An earnings-based discounted cash flow (DCF) model estimates fair value at $165.43—more than 20% below today's price. Similarly, valuation based on median price-to-sales multiples lands around $127.37, highlighting Apple's premium revenue multiple.

Free cash flow projections suggest a valuation of $93.31, less than half of the current trading price. Other methods, including Peter Lynch's valuation ($102.39) and a traditional DCF based on free cash flow ($131.67), also lag well behind market levels. Notably, Apple's tangible book value sits at just $4.44 per share, underscoring that its valuation is built on brand strength and future growth rather than hard assets.

In sum, Apple trades between 7% and 64% above nearly all fundamental benchmarks—suggesting investors are pricing in long-term innovation and sustained expansion of its services ecosystem. Any slowdown in these areas could prompt a significant revaluation.