President Donald Trump has reportedly expressed his strong preference for Apple to shift its iPhone production from India to the United States during a conversation with CEO Tim Cook. Trump's comments highlight the ongoing tensions surrounding global supply chains and trade relations.
The President stated that he had a "little problem" with Cook, referencing Apple's commitment of a $500 billion investment in the U.S. while criticizing the company's expanding manufacturing presence in India. Apple has been actively diversifying its production, aiming to produce approximately 25% of its global iPhones in India within the next few years, a move designed to reduce its heavy reliance on China, where around 90% of its flagship smartphones are currently assembled.
Trump reportedly told Cook, "We’re not interested in you building in India, India can take care of themselves... we want you to build here." He also indicated that Apple would be "upping" its production in the United States, although he did not provide specific details.
These comments came during a broader discussion about U.S.-India trade relations. Trump described India as "one of the highest tariff nations in the world" and mentioned that India had offered a deal to eliminate tariffs on U.S. goods. It's important to note that the U.S. has imposed a "reciprocal tariff" of 26% on Indian goods, which is currently temporarily lowered until July.
Apple's main assembly partner in India, Foxconn, recently received approval from the Indian government to build a semiconductor plant in the country, in partnership with HCL Group, demonstrating India's growing importance in Apple's supply chain diversification strategy.
However, experts argue that moving iPhone production to the U.S. would significantly increase the final product's cost.Estimates suggest that a U.S.-made iPhone could cost between $1,500 and $3,500. Currently, Apple produces limited products in the U.S., including the Mac Pro, and recently announced plans for a server manufacturing facility in Texas to support its Apple Intelligence AI system.
This situation underscores the complex balance between political pressures, economic realities, and the global supply chain strategies of major tech companies like Apple.