US President Donald Trump has once again threatened Apple regarding making iPhone in India. On Friday, Trump said that iPhones sold in America should not be manufactured in India or any other country, but in America only.
Trump said he has previously directly told Apple CEO Tim Cook that the company would be slapped with a tariff of at least 25% if Apple did not make the iPhone in the U.S. After this threat from Trump, Apple’s share fell 4% to $193. Trump wrote on social media platform Truth,
I had long ago informed Apple’s Tim Cook that iPhones that will be sold in the US will be manufactured in the US, not in India or anywhere else. If this does not happen, Apple will have to pay a tariff of at least 25%.
Trump does not want Apple’s products to be made in India
US President Donald Trump does not want Apple’s products to be made in India. Last week, Trump had told the company’s CEO Tim Cook that there was no need to set up factories in India. India can take care of itself.
Trump informed about this conversation with Apple CEO at an event with business leaders in Doha, the capital of Qatar, on Thursday (May 15). He had said that Apple will now have to increase production in America.
Despite this, Foxconn, Apple’s largest contract manufacturer, has invested $1.49 billion (about ₹12,700 crore) in India. Foxconn, through its Singapore unit, has made this investment in Yujahan Technology (India) Private Limited of Tamil Nadu in the last 5 days.
Trump’s full statement in Doha
I had a little trouble with Tim Cook yesterday. I told him, Tim, you’re my friend, you’re coming up with $500 billion, but now I hear you’re producing all over India. I don’t want you to do production in India. If you want to take care of India then you can manufacture in India, because India is one of the highest tariff countries in the world. It is very difficult to sell in India and they have offered us a deal. Under this they are not ready to charge us any tariff. I told Tim, look, we endured all the projects you made in China for years, now you have to produce in America, we don’t want you to produce in India. India can take care of itself.
50% of iPhones sold in the US market are being made in India
Apple CEO Tim Cook had recently told in an interview that 50% of iPhones sold in the American market are being made in India. Cook said India will become the country of origin for iPhones sold in the US in the April-June quarter. He told that other products like AirPods, Apple Watch are also mostly being made in Vietnam.
Why Apple focuses so much on India, 5 points
Supply Chain Diversification: Apple wants to reduce its dependence on China. Due to problems like geopolitical tension, trade dispute and Covid-19 lockdown, the company felt that it was not right to be too dependent in any one area. In this context, India is proving to be a low-risk option for Apple.
Government Incentive: India’s Make in India Initiative and Production Linked Initiative (PLI) schemes provide financial assistance to companies to increase local manufacturing. These policies have encouraged Apple’s partners like Foxconn and Tata to invest more in India.
Growing Market Potential: India is one of the fastest growing smartphone markets in the world. Local production helps Apple more to meet this demand, as well as increasing its market share, which is currently around 6-7%.
Opportunities for Export: Apple exports 70% of its iPhones made in India, benefiting from India’s lower import tariffs compared to China. iPhone exports from India reached $12.8 billion (close to ₹1,09,655 crore) in 2024. It is expected to increase further in the coming time.
Skilled Workforce and Infrastructure: India’s labor force is lagging behind China in terms of experience, but it is still improving a lot. Partners, such as Apple’s Foxconn, are training staff to meet production needs and expanding facilities such as a $2.7 billion (₹23,139 crore) plant in Karnataka.
By 2026, 60 million+ iPhones will be made in the country annually
According to the Financial Times report, Apple has been working on shifting its supply chain out of China for a long time to reduce its dependence on China.
If Apple shifts its assembling towards India by the end of this year, there will be production of more than 6 crore iPhones annually from 2026. This is double the current capacity.
China currently dominates the manufacturing of iPhone. According to IDC, it accounted for about 28% of the company’s global iPhone shipments in 2024.
iPhone production up 60% from March-24 to March-25
From March 2024 to March 2025, Apple made iPhones worth $22 billion (about ₹1.88 lakh crore) in India. It has increased by 60% compared to last year.
During this period, Apple exported iPhones worth $17.4 billion (about ₹1.49 lakh crore) from India. At the same time, one out of every 5 iPhones worldwide is now being made in India. In India, iPhone is manufactured in factories in Tamil Nadu and Karnataka.
Foxconn produces the most in this. Foxconn is Apple’s largest manufacturing partner. Apart from this, Tata Electronics and Pegatron also manufacture.
Sale of $8 billion iPhone in FY 2024
Apple’s smartphone sales reached $8 billion in FY2024. While its share of the market was only 8%. iPhone still remains a luxury in the emerging middle class of India. Therefore the market is expected to grow here.
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