Washington, D.C.— During a state visit to Qatar on May 15, 2025, President Donald Trump publicly urged Apple CEO Tim Cook to stop expanding iPhone production in India and instead increase manufacturing within the United States. This appeal aligns with Trump's broader agenda to bolster domestic manufacturing and reduce reliance on foreign production.
Key Facts:
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Trump's Statement: President Trump expressed his disapproval of Apple's growing manufacturing presence in India, stating, "I don't want you building in India."
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Apple's Investment: Apple has pledged to invest $500 billion in the U.S. over the next four years, including the construction of AI server facilities in Texas.
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India's Role: In the 12 months through March 2025, Apple assembled $22 billion worth of iPhones in India, marking a nearly 60% increase from the previous year.
Apple's strategy to diversify its manufacturing base has led to significant investments in India, with partners like Foxconn and the Tata Group operating major assembly plants. This shift aims to reduce dependence on China amid ongoing trade tensions and to tap into India's growing market and manufacturing capabilities.
Despite President Trump's remarks, Apple has assured Indian officials that its investment and manufacturing plans in the country remain unchanged. The company views India as a critical component of its global supply chain and a key growth market.
Industry analysts caution that relocating iPhone production to the U.S. could significantly increase costs. Estimates suggest that manufacturing iPhones domestically could triple the price, potentially reaching $3,000 per unit, due to higher labor and infrastructure expenses.
Do You Know? Apple's expansion in India has not only bolstered its manufacturing capabilities but also contributed to the country's ambition to become a global tech manufacturing hub. The Indian government has offered incentives, including potential tariff reductions, to attract such investments.
Key Terms:
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Supply Chain Diversification: A strategy employed by companies to spread production across multiple countries to mitigate risks associated with geopolitical tensions, tariffs, or other disruptions.
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Tariffs: Taxes imposed by a government on imported goods, often used to protect domestic industries or as a tool in trade negotiations.
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Foxconn and Tata Group: Major manufacturing partners for Apple, with Foxconn headquartered in Taiwan and Tata Group based in India, both playing significant roles in assembling Apple products.