President Trump mentioned that he urged Apple CEO Tim Cook to reconsider plans for producing iPhones in India and instead focus on expanding operations in the US.
“I had a bit of a problem with Tim Cook yesterday,” Trump noted during a visit to Qatar, reflecting on his conversation with Cook.
“He’s building all over India. He doesn’t want to build it in India,” Trump elaborated.
Following their discussion, Trump stated that “Apple will promote production in the US.”
An Apple spokesperson has not yet provided a comment on this matter.
Trump’s remarks came after Foxconn, one of Apple’s key suppliers, received approval to establish a $433 million semiconductor factory in India, expected to begin operations by 2027.
Tim Cook is among the few executives who maintained a close relationship with Trump during his first term, frequently engaging with the president through calls and dinners. This rapport previously led to reduced tariffs impacting iPhone imports.
Back in February, Apple announced a hefty $500 billion investment in the US economy over the next four years, aimed at creating 20,000 new jobs and developing an AI server facility in Houston, attempting to navigate away from Trump-era tariffs and enhance domestic innovation.
Trump’s comments arise as Apple seeks to increase iPhone production in India to lessen its reliance on China, which has been its primary manufacturing base.
Bloomberg reported that Apple intends to have the majority of its iPhones produced for the US market by late 2026, as part of a strategy to alleviate geopolitical risks and avert trade disruptions stemming from US-China tensions.
Nevertheless, relocating iPhone production to the US presents significant challenges for Apple, especially since much of its supply chain and skilled labor is still situated in Asia. The firm lacks smartphone manufacturing facilities within the US but is committed to its $500 billion domestic investment plan aimed at job growth in the coming years.
Trump’s approach seems consistent; he pressures Apple to localize more production and develop a more robust US supply chain.
“Made in the US is much more expensive than assembling an iPhone in India,” he pointed out.
India has become a critical market and manufacturing center for Apple, with the company witnessing $22 billion in iPhone sales in Japan within a year, marking a 60% production increase compared to the previous year.
Currently, around 20% of Apple’s global iPhone output (over 40 million units) is produced in India, primarily at facilities operated by Foxconn and Tata Group.
Trump indicated he might accept Apple producing equipment in India for local consumption, but not for sales in the US. “If necessary, they can be built in India to take care of India,” he remarked.
Additionally, the former president noted that India had offered to lessen sudden import duties on US goods, part of an ongoing trade negotiation between the two countries.
“India has one of the highest tariff barriers in the world, and it’s extremely difficult to sell American products in the most populous country,” Trump stated.
It remains unclear if Apple will heed Trump’s suggestions to shift more production back to the US.
Analysts indicate that the complexity of Apple’s supply chain might hinder a smooth transition away from India or China, citing significant costs involved in such a move.
“It’s very difficult to completely uproot that,” one analyst commented.
