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International iPhone production is once again under political fire. This time, it's Donald Trump, who has called on Apple CEO Tim Cook to stop shifting iPhone production to India. The demand was made public during Trump's state visit to Qatar. Apple has increasingly relied on India in recent years to break away from its dependence on China. Trump's statements could now make this strategic shift significantly more difficult.
Apple no longer produces the iPhone exclusively in China. Ever since the coronavirus pandemic, the company has been pursuing a diversified supply chain strategy. India has played a key role in this. Production there has been massively expanded, including through partners such as Foxconn, Tata, and Pegatron. For Apple, it's about stability; for Trump, it's about location policy. His statement puts Apple in a political dilemma between economic logic and national pressure.
Trump's criticism of Tim Cook and India
During his stay in Qatar, Donald Trump spoke openly about a conversation with Apple CEO Tim Cook. He said:
I had a small problem with Tim Cook yesterday. He's building everywhere in India.
Trump stated that India had offered the US a deal that would not impose tariffs on Apple products. Yet he rejects the move of production there. His reasoning:
Tim, we treat you really well. We've tolerated all those factories you built in China for years. We're not interested in you building in India. India can take care of itself.
Trump also claimed that after this conversation, Apple had promised to produce more in the US. There have been no concrete commitments from Apple yet.
iPhone production in India grows significantly
Apple produced approximately $22 billion worth of iPhones in India in its last fiscal year (ending March). This represents an increase of nearly 60 percent over the previous year. The majority of iPhone production takes place at the Foxconn factory in southern India. Another key partner is the Tata Group, which acquired the business of the former Wistron site and now also manages Pegatron's activities in India. India is not only a production base for Apple, but also a growth market. The company plans to manufacture a large portion of iPhones destined for the US market in India by the end of next year.
Why Apple wants to move away from China
Apple's push to relocate its production from China was not without reason. Strict COVID-19 measures had massively disrupted manufacturing in China. At the same time, trade conflicts and tariffs—particularly during Trump's term in office—are straining relations between the US and China. Tim Cook commented on this in a quarterly conference call:
We learned some time ago that having everything in one place is too big a risk.
Apple has begun exploring alternative supply sources and will continue to pursue this path. India plays a key role in this.
Trump's alternative: More iPhones from the USA
Trump, on the other hand, is committed to domestic production. He pointed to Apple's planned investments in the US: around $500 billion will be invested in various states over the next four years. A new factory for modern server technology is scheduled to open in Texas this year. However, it will not be an iPhone factory.
iPhone: Apple between business and politics
Trump's criticism puts Apple in a difficult position. The strategy of separating iPhone production from China and distributing it across multiple countries makes economic sense. Politically, however, pressure is growing, especially from the US. Whether Apple will follow suit remains to be seen. For Apple, the situation is complex: India offers favorable production conditions, growing market opportunities, and political stability. The US, on the other hand, is demanding more jobs at home and could, in return, insist on regulatory advantages or tax breaks. It remains to be seen whether Apple will maintain its course or adjust. When you buy an iPhone, the location of production has rarely been decisive. But in the long term, it can influence availability, price, and innovation. Apple's next steps are being closely watched – by politicians, businesspeople, and consumers. (Image: Shutterstock / fireFX)
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