If Apple Inc. (NASDAQ: AAPL) wants to open retail stores in India , it will need to satisfy the government's demands of manufacturing some of its devices locally.
Trip Chowdhry of Global Equities Research commented in a research report that President-elect Donald Trump's domestic economic policies is similar to India's "Make In India " initiative, and this can become a new trend for 2017 and beyond.
America First — Made In The USA
Chowdhry suggested that companies will be embracing local manufacturing for local markets. For instance, Trump told Axios in an interview that Apple's CEO Tim Cook is eyeing domestic manufacturing. The president-elect added that Cook believes and loves his home country and "he'd like to do something major here."
Chowdhry added that Trump's policy would also be supportive of Apple manufacturing iPhones in China destined for the Chinese market.
In fact, the analyst argued that had Apple invested the $150 billion it gave to shareholders through dividends and buybacks in manufacturing initiatives it would be a $1 trillion company today.
Finally, Chowdhry's 2017 investment thesis of "make USA manufacturing sexy again" is quite simple: The more a company invests, builds, hires and prioritizes made in America, the higher the stock will go.
"Companies who are America First — Made in the USA by the USA Workers — will out-perform the rest," Chowdhry concluded. "Days of share buy backs and dividends are over.
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