Why Donald Trump wants Apple to stop production of iPhones in India? Will Tim Cook take the risk? Report claims...

US President Donald Trump on Thursday said he has asked Apple CEO Tim Cook to stop producing iPhones in India, and rather make them in the US. Apple has no smartphone production in the US - most of its iPhones are made in China while facilities in India produce around 40 million units per year (about 15 per cent of Apple's annual output).

Trump, who in his second term as President is pushing for local manufacturing, said Apple will be "upping their production in the United States."

Soon after Trump's comments in Doha, Qatar, Indian government officials spoke to Apple executives, who assured that Apple's investment plans for India are intact and the company proposes to make the country a major manufacturing base for its products.

"I had a little problem with Tim Cook yesterday," Trump said of his conversation with Apple's CEO, in Doha. "I said to him, Tim, you're my friend. I treated you very well. You're coming in with USD 500 billion (investment). 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."

Apple had earlier this year pledged to spend USD 500 billion in the US over the next four years.

As a result of discussions with Cook, Trump said Apple will be "upping their production in the United States." He did not elaborate.

While Apple did not respond to an e-mail sent for comments, sources said Indian officials spoke to executives of the Cupertino-based firm on Trump's statements.

"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," the source said.

Cheaper skilled labour and availability of precision engineered product supply chains have driven Apple to China and India for manufacturing iPhones. American labour and manufacturing in comparison is expensive.

Trump suggested that Apple could make its products in India for the Indian market. But Made in India iPhones being sold in the US has to stop. "You can build in India if you want, to take care of India."

Cook had previously stated that Apple will source the majority of iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets amid uncertainty over tariffs.

India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to raise iPhone production.

Apple assembled 60 per cent more iPhones, worth an estimated USD 22 billion, in India in the year ended March 31.

Foxconn has also started manufacturing Apple Airpods in Telangana for exports.

According to an analysis by S&P Global, iPhone sales in the US were 75.9 million units in 2024, with exports in March from India at 3.1 million units, suggesting a need to double shipments either through new capacity or redirecting shipments bound for the domestic market.

"Apple's Indian exports already headed predominantly to the United States, which represented 81.9 per cent of phones exported by the firm in the three months to February 28, 2025. That increased to 97.6 per cent in March 2025 as a result of a 219 per cent jump in exports, likely reflecting the firm looking to preempt higher tariffs," S&P Global Market Intelligence report said.

Union Minister Ashwini Vaishnaw had in April announced that iPhones worth Rs 1.5 lakh crore were exported from India in fiscal year 2025.

The Apple ecosystem in India is one the biggest job creators in the country. It is estimated to have employed around 2 lakh people across various vendors in the country.

(Except for the headline, this story has not been edited by DNA staff and is published from PTI)