Craig Moffett, co-founder and senior analyst of Moffettnathanson Research, shares insights on the effects of trade talks on Apple during “Claman Countdown.”
President Donald Trump mentioned this week that he has a “little issue” with Apple CEO Tim Cook regarding a manufacturing facility in India that produces iPhones for the U.S. market.
This remark was made by Trump while he was in Qatar, during a visit to the Middle East.
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“I had a problem with Tim Cook yesterday,” Trump asserted. “I told him, ‘Tim, you’re my friend, and I’ve treated you well. You’ve invested $500 billion and now it’s being built in India. I don’t want it built there. If you want to cater to India, fine, but let’s stay here.'”
“But I told Tim, ‘We have treated you pretty nicely. We’ve endured all the plants you’ve set up in China for years. Now, you need to build here. We’re not interested in building in India—they can manage on their own.'”
Apple appears to be looking at India for future iPhone production aimed at the U.S. market, likely hoping to lessen its reliance on current manufacturing avenues due to tariffs. As reported by Bloomberg.
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During Apple’s recent revenue call, Cook informed analysts that Apple predicts that a “majority” of iPhones sold in the U.S. will come from India, while many products like iPads and Macs will predominantly originate from Vietnam.
“China will remain the primary source for most of our products outside the U.S.,” he added.
Trump noted that Apple “will endeavor to increase its production within the U.S.”
“Apple has already invested $500 billion, and they are looking to ramp up production here, which is excellent news,” he commented.
Earlier this year, Apple committed to a $500 billion investment plan over four years, aiming to enhance American innovation and advanced manufacturing practices.
This initiative includes establishing a new “advanced manufacturing” facility in Houston focused on Apple’s artificial intelligence servers, according to the tech giant.
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The broader strategy under this investment includes fortifying the U.S. advanced manufacturing fund, training new generations of manufacturers in Michigan, and boosting R&D investments across cutting-edge sectors like silicon engineering.
In the second quarter, Apple reported nearly $953.6 billion in net sales, with around $46.844 billion coming from iPhone revenue, resulting in a net income of $24.7 billion.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| aapl | Apple Inc. | 212.33 | -0.60 | -0.28% |
