US President Donald Trump has pressed Apple CEO Tim Cook to move iPhone production for the US market from India to domestic facilities, citing a $500 billion investment pledge. Analysts warn this could spike iPhone prices by 25% and disrupt supply chains, per Bloomberg.
During a state visit to Qatar on May 15, President Trump revealed he confronted Apple CEO Tim Cook about the company’s growing iPhone manufacturing in India, urging a shift to US-based production for American-bound devices. Trump, who toured Apple’s Mac Pro facility in Austin, Texas, with Cook in 2019, emphasized Apple’s prior $500 billion US investment commitment. He claimed Cook agreed to ramp up domestic output, though no timeline was specified.
Apple’s India operations, through partners like Foxconn, have been producing non-Pro iPhones for some time and had plans to scale up production of Pro models in the country. This move would benefit both local and global markets, driven by lower labor costs and India’s PLI scheme, according to TechCrunch.
Analysts estimate relocating could raise iPhone production costs by 25% due to higher US labor rates and a less developed electronics ecosystem, potentially hiking prices from $799 to $999 for base models.
The remarks triggered a dip in Apple’s stock, closing at $211.46 on May 15. Trump’s history with Cook includes praise for his direct engagement, recalling a 2019 tariff discussion. However, moving production risks supply chain chaos, as Asia dominates Apple’s 200+ supplier network, per Nikkei Asia. According to reports, India now accounts for 10% of global iPhone production, while China remains the dominant manufacturing hub. Will Apple pivot to appease Trump, or will cost and logistics keep India in play? With the iPhone 17 Air looming, Cook’s next move is critical.
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(Source: Apple Newsroom, Investor’s Business Daily )
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