US President Donald Trump’s latest diktat to Apple CEO Tim Cook against making in India is unlikely to shake the iPhone maker’s expansion plans in the country.
Senior government officials told ET that companies have taken a long-term bet on India and there is unlikely to be an impact due to one statement.
"We have spoken to all significant players, and all their plans are on track," said a second official.
Echoing a similar sentiment, Apple executives also assured the Indian government officials that the company's investment plans are intact and the country would be a major manufacturing base for Apple.
Trump on Friday said he spoke to Cook and told him that he doesn't want Apple to make its products in India and instead increase production in the US.
ALSO READ: Apple investment plans in India intact, proposes India to be major manufacturing base: Source
"We have Apple, as you know, it's coming in. And I had a little problem with Tim Cook yesterday. I said to him, Tim, you're my friend. I treated you very well. You're coming in with USD 500 billion. But now I hear you're building all over India. I don't want you building in India. You can build in India if you want to take care of India," Trump said.
But, can Apple afford to produce in the US?
Despite Trump’s push for Apple to bring production back to the US, the move would be a costly affair that the tech giant can’t afford.
Industry experts have warned that if the USA starts manufacturing iPhones in the US as compared to India, it will cost $3,000, which is almost three times the current cost of $1,000 per iPhone.
ALSO READ: Trump wants Apple to stop moving iPhone production to India, says New Delhi can take care of itself
Responding to the US President's remarks, Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), said, "A lot better thought would prevail both in the Apple company and the US administration. They would realise the following facts. First, if they decide to manufacture in the USA as compared to China, India, or Vietnam, a USD 1,000 iPhone would cost $3,000. Are American consumers willing to pay $3,000 for that iPhone?"
ALSO READ: Manufacturing iPhones in US from India could raise price to USD 3,000 from USD 1000 now
He pointed out that currently, 80 per cent of Apple's manufacturing takes place in China, creating around 5 million jobs there. When Apple CEO Tim Cook announced plans to manufacture in India, it meant shifting some manufacturing from China to India to diversify the supply chain.
"The manufacturing and jobs are not moving away from the USA to India, they are moving from China to India so that they would have a diversified supply chain, and American companies and consumers are protected right from the hegemony of one country that is not most friendly with them in terms of trade.," Girbane added.
Apple has been deepening its footprint in India through various partners. According to government sources, 15 per cent of iPhone's global output comes from India.
Taiwanese contract manufacturer Foxconn, one of its largest suppliers, has been doubling down on its India operations to satiate Apple's plans to diversify production beyond China. Other suppliers like Tata Electronics too have been aggressively expanding operations in the country. Further, the Cupertino, California-based firm has been engaged in talks with several Indian firms to onboard them as suppliers, in a bid to boost its localisation efforts in the country.
“Companies go to places where they can reduce costs and be more competitive. Business is guided by cost, revenue and profitability principles … India has shown its value to Make in India. We are an attractive destination. Irrespective of protectionism, India will continue to attract such companies to make in India,” an senior government official told ET.
India’s Apple cart to remain on track
Despite Trump’s strong statement, Apple’s expanding manufacturing presence in India is unlikely to be derailed anytime soon.
"Apple has said that its investment plans in India are intact and it proposes to continue to have India as a major manufacturing base for its products," a government source said told PTI.
Moreover, suppliers have not received any communication from Apple or any other companies to stop their expansion in India as yet, an industry source aware of the developments told ET, adding that everything is going as per plan for the new launches later in the year as well.
Cook has already announced that the global giant will source the majority of iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets amid uncertainty over tax tariffs.
Foxconn has also started manufacturing Apple Airpods in Telangana for exports.
According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market.
Union Minister Ashwini Vaishnaw had in April announced that iPhones worth Rs 1.5 lakh crore were exported from India in fiscal year 2025.
The Apple ecosystem in India is one the biggest job creators in the country. It is estimated to have employed around 2 lakh people across various vendors in the country.
(With agency inputs)
Senior government officials told ET that companies have taken a long-term bet on India and there is unlikely to be an impact due to one statement.
"We have spoken to all significant players, and all their plans are on track," said a second official.
Echoing a similar sentiment, Apple executives also assured the Indian government officials that the company's investment plans are intact and the country would be a major manufacturing base for Apple.
Trump on Friday said he spoke to Cook and told him that he doesn't want Apple to make its products in India and instead increase production in the US.
ALSO READ: Apple investment plans in India intact, proposes India to be major manufacturing base: Source
"We have Apple, as you know, it's coming in. And I had a little problem with Tim Cook yesterday. I said to him, Tim, you're my friend. I treated you very well. You're coming in with USD 500 billion. But now I hear you're building all over India. I don't want you building in India. You can build in India if you want to take care of India," Trump said.
But, can Apple afford to produce in the US?
Despite Trump’s push for Apple to bring production back to the US, the move would be a costly affair that the tech giant can’t afford.
Industry experts have warned that if the USA starts manufacturing iPhones in the US as compared to India, it will cost $3,000, which is almost three times the current cost of $1,000 per iPhone.
ALSO READ: Trump wants Apple to stop moving iPhone production to India, says New Delhi can take care of itself
Responding to the US President's remarks, Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), said, "A lot better thought would prevail both in the Apple company and the US administration. They would realise the following facts. First, if they decide to manufacture in the USA as compared to China, India, or Vietnam, a USD 1,000 iPhone would cost $3,000. Are American consumers willing to pay $3,000 for that iPhone?"
ALSO READ: Manufacturing iPhones in US from India could raise price to USD 3,000 from USD 1000 now
He pointed out that currently, 80 per cent of Apple's manufacturing takes place in China, creating around 5 million jobs there. When Apple CEO Tim Cook announced plans to manufacture in India, it meant shifting some manufacturing from China to India to diversify the supply chain.
"The manufacturing and jobs are not moving away from the USA to India, they are moving from China to India so that they would have a diversified supply chain, and American companies and consumers are protected right from the hegemony of one country that is not most friendly with them in terms of trade.," Girbane added.
Apple has been deepening its footprint in India through various partners. According to government sources, 15 per cent of iPhone's global output comes from India.
Taiwanese contract manufacturer Foxconn, one of its largest suppliers, has been doubling down on its India operations to satiate Apple's plans to diversify production beyond China. Other suppliers like Tata Electronics too have been aggressively expanding operations in the country. Further, the Cupertino, California-based firm has been engaged in talks with several Indian firms to onboard them as suppliers, in a bid to boost its localisation efforts in the country.
“Companies go to places where they can reduce costs and be more competitive. Business is guided by cost, revenue and profitability principles … India has shown its value to Make in India. We are an attractive destination. Irrespective of protectionism, India will continue to attract such companies to make in India,” an senior government official told ET.
India’s Apple cart to remain on track
Despite Trump’s strong statement, Apple’s expanding manufacturing presence in India is unlikely to be derailed anytime soon.
"Apple has said that its investment plans in India are intact and it proposes to continue to have India as a major manufacturing base for its products," a government source said told PTI.
Moreover, suppliers have not received any communication from Apple or any other companies to stop their expansion in India as yet, an industry source aware of the developments told ET, adding that everything is going as per plan for the new launches later in the year as well.
Cook has already announced that the global giant will source the majority of iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets amid uncertainty over tax tariffs.
Foxconn has also started manufacturing Apple Airpods in Telangana for exports.
According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market.
Union Minister Ashwini Vaishnaw had in April announced that iPhones worth Rs 1.5 lakh crore were exported from India in fiscal year 2025.
The Apple ecosystem in India is one the biggest job creators in the country. It is estimated to have employed around 2 lakh people across various vendors in the country.
(With agency inputs)
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