Trump unhappy with Apple: iPhones from India undesirable for the USA

In order to avoid high import duties in the USA, Apple is increasingly relying on iPhone production in India, thereby angering the US President.

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An iPhone 15 is in the box

(Image: Sebastian Trepesch)

3 min. read

US President Trump has once again called on Apple to manufacture iPhones in the USA and to build plants there – and not just to relocate further parts of production from China to India. He had "a little problem" with Apple boss Tim Cook, Trump explained at a press conference in Qatar. He had already "tolerated all these plants" that Apple had built in China over the years – history must not be repeated in India now. Apple must bring production to the USA instead.

At the beginning of the year, the company announced an investment of 500 billion US dollars in the domestic market. However, this does not include a major relocation of production. Apple will now increase this once again, Trump noted vaguely. Apple itself has not yet commented on this.

Due to the now exorbitant punitive tariffs on goods in China, Apple has apparently significantly expanded the final production of iPhones in India. In the current financial quarter, the manufacturer will be able to meet US demand almost entirely with iPhones from India, Cook recently explained to financial analysts. According to a report, the Group wants to be able to produce all iPhones for the US market in India by the end of 2026.

It has been apparent for some time that Apple's dependence on China as a production location is becoming an increasingly serious problem. Cook is now also caught between two stools: the relocation of final iPhone assembly to India is not only viewed with suspicion in the USA, but also in China, where Apple's plans are being blocked as far as possible. For the current quarter, Apple estimates that the current tariffs could cost the company around 900 million US dollars. According to a report, price increases are already being discussed for the iPhone 17 series as a result. A significant relocation of the huge iPhone production to the USA is currently considered unlikely – It would be an extremely costly project that would take many years to complete. Apart from the huge final production, numerous Apple suppliers are also based in China.

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Apple has ultimately turned China into a high-tech nation by building up its production and huge supply chain, a Financial Times journalist criticizes in a newly published book "Apple in China". This has transferred massive amounts of technology and know-how there without there having been a change towards more democracy. China has ultimately become a manufacturing giant that could not only take over the global smartphone market, but also other markets such as electric cars. Apple described the book to Vanity Fair as "untrue" and riddled with "inaccuracies".

(lbe)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.