Donald Trump is “not interested” in India’s production of iPhones, but Apple won’t bother
The smartphone maker reportedly guaranteed the Indian business in New Delhi is intact after U.S. President Donald Trump’s comments about wanting Apple to stay in India.
U.S. President Donald Trump said on Thursday that he had asked Apple CEO Tim Cook to end his iPhone manufacturing business in India.
Trump said in his second term as president in pushing local manufacturing industry a second term that Apple will “raise its production in the United States.”
“I had a small problem with Tim Cook yesterday,” Donald Trump said of his conversation with Apple CEO Doha.
“I said to him, Tim, you are my friend. I’m very nice to you.
As of now, Apple has not made any smartphones in the United States. China is the largest manufacturer of iPhones, while India’s facilities produce about 40 million units per year (about 15% of Apple’s annual production).
Apple assured New Delhi
Shortly after Trump commented in Qatar (Doha), Indian government officials spoke with executives at Apple, who assured that Apple’s investment plans in India were intact, and the company recommended that the country be the main manufacturing base for its products, according to the PTI report.
Although Apple did not respond to the emails that commented, sources from the news agency said Indian officials spoke to Cupertino executives about Trump’s statement.
“Apple said its investment plan in India is complete and it recommends continuing to use India as its main manufacturing base for its products,” PTI said.
Cheap skilled labor and the availability of precision engineering product supply chains have led Apple to make iPhones in China and India. By contrast, labor and manufacturing in the United States are expensive.
Trump suggests Apple can make its products in the Indian market. But Indian iPhones sold in the United States must be stopped. “You can build it in India if you want to take care of India.”
Cook has previously said Apple will acquire most iPhones from India in the June quarter, while China will produce the vast majority of equipment for other markets amid tariff uncertainty.
The iPhone made in India is assembled by Taiwanese contract manufacturer Foxconn’s factory in Tamil Nadu. Tata Electronics is an operation of Pegatron Corp in India and is another major manufacturer. Tata and Foxconn are building new plants and increasing production capacity to increase iPhone production.
As of March 31, Apple has pooled 60% of its iPhones in India, with an estimated value of $22 billion.
Foxconn also began manufacturing Apple Airpods in Telangana for export.
