US President’s Comments Raise Questions: Will Apple Pull Out of India?

Mumbai, 16th May – During a recent visit to Qatar, the US President made headlines with comments that could reshape India-US trade dynamics. He highlighted India’s proposal to eliminate tariffs on American goods, which could open new doors for bilateral commerce. Yet, it was his straightforward criticism of Apple’s expanding manufacturing in India, directed at CEO Tim Cook, that sparked widespread discussion.

“I had a little problem with Tim Cook yesterday,” the President remarked. “I told him, ‘My friend, I treated you very well. You’re bringing $500 billion here, but now I hear you’re building all over India. I don’t want you building in India.’”

These remarks have raised questions about whether Apple will rethink its growth strategy in India. To better understand the stakes, it is important to examine Apple’s role in India’s manufacturing ecosystem and consumer market.

As the situation develops, all eyes are on Apple — and only time will tell what’s cooking at the Apple Park.

India: The Prime Alternative to China

Apple has long depended heavily on China, where approximately 80% of iPhones are manufactured. However, recent disruptions including US-China trade tensions, tariff increases, and pandemic-related shutdowns have forced Apple to reconsider its heavy reliance on a single country.

India has since emerged as Apple’s leading alternative manufacturing base. Despite decades of supply chain development in China, Apple is increasingly diversifying production to countries like India and Vietnam.

Rapid Expansion of Apple’s Production in India

Apple’s manufacturing footprint in India has seen remarkable growth in recent years. According to Bloomberg, Apple produced $22 billion worth of iPhones in India during fiscal year 2024-25, with $17 billion of those units exported worldwide. This means one out of every five iPhones sold globally is now made in India.

Local partners such as Foxconn and Tata Electronics have been instrumental in this expansion. Foxconn alone accounted for shipments worth $1.3 billion and recently received government approval to establish a semiconductor plant in Uttar Pradesh in partnership with HCL Technologies, investing ₹3,700 crore.

The Cost Factor: Why India Makes Financial Sense

Manufacturing iPhones in the United States would be prohibitively expensive. Analysts estimate that iPhones made domestically could cost as much as $3,500 due to higher labour and logistics expenses. In contrast, producing the latest iPhone 16 in India costs under $500 per device, representing a significant cost advantage.

India: Not Just a Factory, But a Growing Market

India’s importance to Apple extends beyond manufacturing. It is now Apple’s fourth-largest market after the US, China, and Japan. In 2024 alone, Apple shipped over 12 million iPhones to Indian customers, with the company steadily increasing its share in the country’s premium smartphone segment.

The Road Ahead

The US President’s candid remarks have put Apple’s India strategy in the spotlight. Will CEO Tim Cook bow to political pressure and slow expansion? Or will Apple’s decisions be driven by pragmatic business factors such as cost competitiveness, supply chain security, and India’s growing consumer base?

Only time will tell what path Apple chooses — but for now, the world is watching closely.