U.S. President Donald Trump has issued a stark warning to Apple CEO Tim Cook regarding the tech giant’s ambitious plans to manufacture 25% of its iPhones in India. The cautionary message comes amid Apple’s strategic push to diversify its manufacturing operations beyond China, marking a significant shift in global tech production dynamics.

Apple’s expansion in India has been remarkably aggressive, with production figures showing a substantial 60% surge in the fiscal year ending March 2025. The company currently assembles approximately 20% of its global iPhone production in India, primarily at Foxconn’s facility in the southern region of the country.

The tech giant’s pivot towards India is driven by multiple strategic factors, including favourable government policies and reduced U.S. duties on India-manufactured smartphones. This shift also represents a calculated move to reduce dependency on China, where Apple has faced significant challenges due to strict COVID-19 lockdowns and escalating U.S.-China tensions.

Trump’s opposition to Apple’s Indian manufacturing plans aligns with his long-standing advocacy for domestic U.S. manufacturing. However, industry analysts point out that relocating production to the United States faces considerable obstacles, particularly regarding labour availability and infrastructure requirements.

The Indian government’s role in attracting Apple’s increased investment has been substantial. Prime Minister Narendra Modi’s administration has implemented attractive financial incentives to boost electronics manufacturing, including semiconductor production. These initiatives form part of India’s broader strategy to establish itself as a global manufacturing powerhouse.

Market indicators suggest Apple’s strategy is yielding positive results, with iPhone shipments in India recording a 28% increase in the first quarter of 2025 compared to the previous year. The company’s enhanced local manufacturing presence is anticipated to strengthen its market position further in the region.

The geopolitical implications of Apple’s manufacturing shift extend beyond corporate strategy. This move represents a significant realignment in global supply chains, potentially influencing international trade relationships and economic partnerships. The development also highlights India’s growing influence in the global technology manufacturing sector.

Despite Trump’s concerns, Apple’s trajectory in India appears set to continue, reflecting broader changes in global manufacturing patterns. The company’s strategic decisions will likely continue to balance various factors, including geopolitical considerations, economic efficiency, and market access opportunities.

News Source: CNBC