Trump warns Apple CEO Tim Cook against expanding iPhone assembly in India

[midian182]

What just happened? Apple's plan to move assembly of US-bound iPhones from China to India has not been welcomed by Donald Trump. The president has asked CEO Tim Cook not to expand production in the country as "India can take care of themselves."

In April, it was reported that Apple was preparing to move all assembly of iPhones destined for the US market from China to India by the end of 2026. The move is a direct response to the – now paused – tariffs Trump has imposed on imported Chinese goods.

Speaking during a business event in Doha, Trump said he had a "little problem" with Tim Cook. "I said to him, my friend, I am treating you very good. You are coming up with $500 billion, but now I hear you are 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 because India is one of the highest tariff nations in the world, so it is very hard to sell in India," the president said.

Trump added that following their discussion, Apple would be "upping their production in the United States."

Apple first started producing iPhones in India in 2017. The initial focus was on low-cost models, but the country started assembling flagship lines in 2023.

Apple iPhone production in India increased 60% to $22 billion in the previous fiscal year. Most of the assembly takes place at Foxconn's Hon Hai plant in Sriperumbudur, which is the single-largest site and turns out most of the iPhone 15/16 family, including Pro models. Pegatron builds additional volumes at its campus inside Mahindra World City, also on the outskirts of Chennai. And Tata Electronics, which bought Wistron's India unit in 2024, produces older-generation iPhones and some 16-series lines at Hosur.

With Trump introducing a 145% tariff on Chinese goods, which has been paused for 90 days, Apple put even more focus on India for its iPhone production. It aims to make around 25% of global iPhones in the country within the next few years as it lessens its reliance on China. The problem for Apple is that 80% of iPhones sold in the US are currently made in China.

Trump wants Apple and other companies to move manufacturing entirely to the US. With over 2,700 parts from 187 suppliers, all but 30 of which are Chinese, a US-made iPhone is a near-impossibility. Even if Apple could do it, moving production to the United States would take many years and would likely result in even more price hikes placed on its handsets.

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Trump warns Apple CEO Tim Cook against expanding iPhone assembly in India

 

[TooQik]

Not that I'm a fan of Apple, but so much for freedom of choice in where they make their products.

 

[Alfonso Maruccia]

Man, this new House of Cards extra season is going mental...

 

[Axeia]

"I want you to make your products in America" basically.

But good luck with that, that blue bubble is really going to be a status symbol in the future.

Apple is an expert at abusing loopholes, I'm expecting something where 90 percent of the labor is still done in India an they'll glue it together and stick it in a box in the US to skirt regulations and tariffs somehow.
With Taiwan not allowing the latest TSMC nice to be produced elsewhere and Apple always being on the latest node (usually even as the very first in an exclusivity deal) that's just one problem with an all American iPhone. Basically every single thing possible to prevent creating American jobs and paying American wages will be used. Prices are also bound to go up tons because they're no way Apple wants to eat any of the costs. Probably will lead to the rise of some new but on credit structure to sink the average blue bubble loving American further into debt.

 

[GodisanAtheist]

Hi, would you like a 30 year flat rate or 10/10/10 adjustable rate loan to pay for your new iPhone?

Great we'll get the documents over to the titling company shortly who will walk you through the escrow process...

 

[BabyFaceLee]

Timothy should present Trump with an exquisite jewel-encrusted solid gold iPhone hand crafted by the most esteemed Indian crafts-persons. Et voila.

 

[Pastuch]

How is apple supposed to keep making 90% profit off of every phone sold if it's built in the states? They MUST make those margins. Apple is evil.

 

[bviktor]

How is apple supposed to keep making 90% profit off of every phone sold if it's built in the states? They MUST make those margins. Apple is evil.

It's around 45%, and naturally, it won't take into account other expenses, like R&D and marketing.

In any case, how dare they make money as a for-profit company, seriously?!

 

[BobHome]

Hi, would you like a 30 year flat rate or 10/10/10 adjustable rate loan to pay for your new iPhone?

Great we'll get the documents over to the titling company shortly who will walk you through the escrow process...

Oh, in the interest of full disclosure, your warranty will expire making the phone obsolete before your payments end.

 

[AnilD]

Apple's shift to India isn’t just about tariffs, it’s a long-term hedge against overreliance on China.
That’s not to say Apple is simply trying to avoid tariffs like dodging blue shells in Mario Kart.

 

[dirtyferret]

trump wants Apple and other companies to move manufacturing entirely to the US. With over 2,700 parts from 187 suppliers, all but 30 of which are Chinese, a US-made iPhone is a near-impossibility.

- the orange clown is a nitwit as are his cultist followers

 

[Kashim]

Trump added that following their discussion, Apple would be "upping their production in the United States."

I laughed so hard when I read that line. This is classic Trump. One phone call, one short conversation laden with threats, and boom the problem is fixed! Apple would be upping their production in the US? From zero to what exactly? Always big on promises and bluster, but always zero details. Just like a mob boss: trust me, it's been taken care of, you don't need to know the details.

PS. - iPhones will never EVER be manufactured in the US. No amount of threats or bluster is going to change the fact that it costs 10x more to manufacture anything in the US compared to China/India/etc.

 

[DrSuess]

Well they sure are not going to build them in the US. As a previous article stated they have 260 different vendors from across the world. Importing nearly 260 different parts and then trying to pay and give benefits to a highly paid work force would likely cause a US built iPhone to cost more than a tariff imported phone.

Trump has some unrealistic expectations on bringing any meaningful manufacturing that will provide a significant amount of jobs in the US. He doesn't seem to have a grasp on the economics of manufacturing and how it limits the US as a manufacturing powerhouse, those days are gone.