Apple (AAPL, Financial) faces pressure as Trump urges halt to India manufacturing.
U.S. President Donald Trump said he told CEO Tim Cook in Qatar, “I don't want you building in India,” after learning Apple plans to diversify iPhone assembly beyond China. Trump argued that India's high tariff barriers make it tough to sell U.S. goods there, and he noted New Delhi has offered to cut import taxes as part of broader trade talks.
Bloomberg News reported that following the discussion, Apple will be “upping their production in the United States,” though details around any timeline or volume shifts remain unclear.
Apple still makes the bulk of its iPhones in China, but shipments from India climbed to represent 26% of U.S. iPhone deliveries in Q1 2025, up from 16% a year earlier, per Counterpoint Research.
Meanwhile, China's share dipped to 52% from 56% over the same period. Last week, India approved Foxconn's $435 million fabrication plant, targeting a facility in southern India where most India-made iPhones are assembled.
Tata Group's electronics arm—which now operates Pegatron's former Wistron site—also contributes to local output, helping Apple scale production by roughly 60% year-over-year to about $22 billion in the 12 months through March.
Apple and the White House have not commented on record, and Trump's remarks come as global manufacturers weigh geopolitical risks in their supply-chain strategies. Any formal U.S. policy change or executive order could force Apple to rethink its multi-country sourcing approach—potentially delaying India's full adoption as a key iPhone hub.
Why it matters: A shift back toward U.S. assembly could raise Apple's costs and margins, while slowing its India expansion amid booming local demand.
Investors will watch Apple's June quarter earnings and any follow-up guidance on production footprint adjustments.
