- What did Tim Cook say?
- What exactly did Donald Trump say?
- Why is Tim Cook and Apple keen on India?
- Why does Apple want to diversify away from China?
- What if Apple starts making iPhones only in the US?
- How will Tim Cook and Apple navigate the situation?
Tim Cook-led Apple has reassured Indian officials that Apple’s manufacturing plans in India are firmly on track, despite US President Donald Trump’s recent remarks suggesting otherwise. When Tim Cook landed in India last year and met with top ministers, it was seen as a defining moment for India’s electronics manufacturing story.
However, following Trump’s statement that he had urged the Apple CEO Tim Cook to stop making iPhones in India and focus on US production instead, Indian authorities promptly sought clarification from the tech giant. In response, Apple confirmed that its investment commitments in India remain unchanged. Sources told PTI that Apple views India as a major manufacturing base moving forward.
“Apple has said that its investment plans in India are intact and it proposes to continue to have India as a major manufacturing base for its products,” an official confirmed to the news agency. So, what’s really happening? Let us break it down.
What did Tim Cook say?
While Tim Cook himself did not say anything publicly in response to Trump’s comments, Apple quietly reassured the Indian government that its investment and manufacturing plans in India are intact, as per PTI report. This came after Trump’s speech in Doha where he claimed to have told Tim Cook not to manufacture in India.
What exactly did Donald Trump say?
At the business forum in Doha, Trump said, “I had a little problem with Tim Cook. I said to him, Tim, you’re my friend. But now I hear you’re building all over India. I don’t want you building in India if you want to take care of India.” He also added that Apple would now “increase its production in the United States,” although he didn’t offer details.
Trump’s remarks came at a time when trade relations between India and the US were seeing a bit of strain following India hinting at retaliatory tariffs after the US raised duties on Indian steel and aluminium. Trump seemed especially frustrated by India’s tariffs, calling it one of the “highest-tariff nations in the world.”
Trump further claimed that Apple could still make phones in India for the Indian market but not for export to the US. This unusual intervention sparked immediate speculation. Was Apple about to change course? Would iPhone production shift back to the US?
Why is Tim Cook and Apple keen on India?
India is not just another manufacturing location for Apple. It is the second-largest iPhone-making hub after China, and growing fast. In FY25, iPhones worth more than ₹1.5 lakh crore were exported from India, mostly to the United States. The Indian government, which has heavily incentivized electronics production through schemes like PLI (Production Linked Incentive), helps Apple to diversify out of China.
Apple is more invested in India than ever before. According to government data and PTI reports, Apple assembled iPhones worth approximately $22 billion in India between April 2024 and March 2025. That’s a 60% increase over the previous year.
Here’s a look at the numbers:
| Metric | Value (FY25) |
| Apple iPhones assembled in India | $22 billion |
| Year-on-year growth | 60% |
| iPhones exported to US (March alone) | 3 million+ units |
| Share of global iPhone output from India | ~15% |
| Jobs created through Apple ecosystem | Around 200,000 |
Source: PTI, Bloomberg, S&P Global Market Intelligence
The company works with Taiwanese giants like TSMC, Foxconn, Pegatron, and now Tata Electronics, which recently acquired Pegatron’s India operations. Foxconn has also begun manufacturing AirPods in Telangana, showing that Apple is diversifying its product assembly in the country.
In return, Apple’s manufacturing activity has ripple effects on the Indian economy as it creates jobs, boosts exports, and builds a stronger supply chain ecosystem.
Why does Apple want to diversify away from China?
Apple has long relied on China as its main production base, nearly 90% of its iPhones are still assembled there. But that dependence comes with risks. Trade tensions between the US and China, rising labor costs, Covid crisis, and geopolitical uncertainties have made Apple look elsewhere. India and Vietnam have emerged as viable alternatives, offering a mix of government support, labor availability, and improving infrastructure.
Tim Cook, in a recent earnings call, mentioned that Apple is already sourcing products for American markets from both Vietnam and India. He added that the future is “difficult to predict,” but diversification is clearly a priority.
What if Apple starts making iPhones only in the US?
Donald Trump’s idea of bringing iPhone manufacturing entirely back to the US sounds patriotic but it is not practical for the iPhone maker at the moment. Manufacturing in the US is significantly more expensive due to labor and infrastructure costs. Apple thrives on a highly optimized supply chain spread across Asia, and dismantling that for a US-centric model would likely increase product costs, disrupt delivery timelines, and reduce margins.
To put things in perspective:
| Country | Labor Cost Index (est.) | Manufacturing Ecosystem Maturity | Current Output Share |
| China | Low to Medium | High | ~80% |
| India | Low | Growing Fast | ~15% |
| USA | High | Low for Electronics | <1% |
Source: Bloomberg, Evercore ISI, CNBC
Bringing production to the US might boost the domestic manufacturing narrative but it does not align with the realities of the tech manufacturing world. Apple’s move to India is not just about costs, it is about scale, speed, and staying competitive.
How will Tim Cook and Apple navigate the situation?
Despite Donald Trump’s unexpected call to stop manufacturing in India, Apple is not going anywhere as per the company statement. With billions worth of iPhones assembled in India and millions of units shipped to the US, India is not just an option for Apple, it is a necessity. For now, Trump’s comments appear more political than practical, and Apple seems determined to keep building where it makes the most business sense.
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