Donald Trump Increases Pressure on Apple: Manufacture iPhones Exclusively for US in India
Trump suggests Apple should exclusively produce for the Indian market within India. - Trump urges Apple to manufacture devices in India to cater to the domestic market.
US President Donald Trump continues to pressure Apple CEO Tim Cook to produce more devices in the US rather than in India. "I had an issue with Tim Cook yesterday," Trump commented at an event in Doha, Qatar. "Tim, you're my friend, I've treated you well," he addressed the Apple CEO. Despite Cook's pledge of $500 billion (€446 billion) in US investments, he still has devices being manufactured "everywhere in India," Trump stated.
The Trump administration has been urging Apple for a while now to manufacture the iconic iPhone—the company's crown jewel—in the US, as well. Experts predict that such a move would necessitate substantial investments and would significantly increase the price of smartphones.
Under Cook's leadership, Apple has created supply chains in Asia, with vast factories, primarily in China, for several decades. However, under his direction, Apple has been expanding production in India and Vietnam for years due to supply chain disruptions caused by Covid lockdowns in China.
India and Vietnam: New Destinations for Apple Production
Over the past few months, Trump's tariff threats have persuaded Apple to reshape its supply chains for the US market. According to current projections, most iPhones destined for the US market will be produced in India, while iPads, Mac computers, and Apple Watches will mainly be supplied from Vietnam. This shift aims to minimize tariffs on goods from these countries compared to those from China.
US Commerce Secretary Howard Lutnick recently asserted that Cook assured him that Apple would set up iPhone production in the US once adequate robotic arms suitable for the task were available.
- Apple
- India
- Donald Trump
- US
- iPhone
- Tariffs
- CEO
- China
- Asia
- Vietnam
- Doha
- Qatar
- Tim Cook
Background knowledge:
- To dodge tariffs on Chinese imports, which reach up to 145%, Apple is considering manufacturing iPhones primariliy in India for the US market.
- By diversifying its supply chain, Apple aims to reduce its reliance on China, where it faces increasing trade tensions and risks.
- India offers a stable and cost-effective alternative for iPhone production with existing infrastructure and competitive costs.
- Manufacturing in the US would demand significant investment in new facilities and workforce training, which is costly and time-consuming.
- Political pressures on Apple from figures like Donald Trump notwithstanding, establishing production facilities in the US carries substantial practical and economic challenges.
The Commission is also proposing to extend the scope of the programme to include Finance and Business technology, given the potential impacts of Apple's manufacturing decisions on these sectors. Politicians and financial analysts are closely watching the current developments, with General-News outlets reporting increased tariffs on goods imported from China, affecting Apple's production costs. Donald Trump, although pressuring Apple to manufacture iPhones exclusively for US markets, such as India, faces the practical and economic challenges of setting up production facilities in the US, where Apple's CEO, Tim Cook, would have to invest significantly in new facilities and workforce training.
