US President Donald Trump stated on Thursday that he has requested Apple CEO Tim Cook to cease production of iPhones in India and instead manufacture them in the United States. Currently, Apple produces no smartphones in the US, relying on China for the majority of its iPhones, while its Indian facilities contribute around 40 million units annually, which is approximately 15% of Apple’s total production. During his remarks in Doha, Qatar, Trump emphasized his push for local manufacturing, stating that Apple will increase its production within the United States. Following Trump’s comments, Indian government officials reached out to Apple executives, who confirmed that their investment plans in India remain unchanged, and the company aims to establish India as a significant manufacturing hub for its products.
“I had a little problem with Tim Cook yesterday,” Trump remarked during his conversation with Cook, where he expressed that although he has treated Cook well and welcomed a $500 billion investment, he is concerned about the expansion in India. He insisted, “I don’t want you building in India if you want to take care of America.” Earlier this year, Apple pledged to invest $500 billion in the US over the next four years.
While Apple did not respond to inquiries regarding Trump’s statements, sources indicate that Indian officials communicated with Apple executives to discuss the implications. The company has reiterated its commitment to maintaining India as a key manufacturing base.
Factors such as lower labor costs and well-established supply chains have attracted Apple to manufacture iPhones in China and India. In contrast, manufacturing in the US is viewed as more expensive. Trump suggested that Apple could continue producing products in India for the local market but insisted that iPhones made in India should not be sold in the US. Cook had previously indicated that a significant portion of iPhones sold in the US would be sourced from India during the upcoming quarter, while China would handle production for other global markets amid ongoing tariff uncertainties.
iPhones produced in India are assembled at a Foxconn factory in Tamil Nadu, with Tata Electronics also playing a pivotal role in manufacturing. Both companies are expanding production capabilities to boost iPhone assembly. As of March 31, Apple increased its iPhone output in India by 60%, translating to an estimated $22 billion in assembled products. Additionally, Foxconn has begun the production of Apple AirPods in Telangana for export.
According to an analysis by S&P Global, iPhone sales in the US reached 75.9 million units in 2024, with March exports from India totaling 3.1 million units, highlighting the necessity for increased shipments. A report indicated that 81.9% of Apple’s exports were directed to the US in the three months leading up to February 28, 2025, which surged to 97.6% in March, reflecting a proactive approach to anticipated tariff hikes.
In April, Union Minister Ashwini Vaishnaw announced that iPhones worth ₹1.5 lakh crore were exported from India in the fiscal year 2025. The Apple ecosystem in India is a major job creator, employing approximately 200,000 people across various suppliers nationwide. India’s smartphone exports are reportedly experiencing robust growth, reinforcing the country’s status as a vital player in the mobile manufacturing sector.
Government officials noted that India’s strong competitive edge in assembly work and its ability to create a favorable environment for sophisticated manufacturing processes ensure a promising future for high-tech companies like Apple. They expressed confidence that India would continue to attract international firms, enhancing its reputation as a global manufacturing hub.
Original Source: https://www.ndtv.com/india-news/apple-plans-in-india-intact-sources-on-donald-trump-make-in-us-call-8430177#publisher=newsstand
Category:
Tags:
Publish Date: 2025-05-16 16:42:00
