TrendForce News operates independently from our research team, curating key semiconductor and tech updates to support timely, informed decisions.
According to CNBC, U.S. President Donald Trump said he told Apple CEO Tim Cook that he is against the company manufacturing its devices in India, instead urging Cook to bring production back to the U.S.
Trump also added that Apple plans to ramp up its U.S. manufacturing, though he did not provide further details, CNBC indicates.
As noted in the report, President Trump imposed a 26% reciprocal tariff on Indian goods under the White House’s April trade policy. However, the rate has been temporarily reduced.
Will iPhone Be Produced in the U.S.?
It’s worth noting that Apple currently has no smartphone production lines in the U.S., as pointed out by Mydrivers. CNBC highlights that shifting iPhone production to the U.S. is considered highly unlikely due to the associated costs, with estimates suggesting that a U.S.-made iPhone could cost between USD 1,500 and USD 3,500.
At present, Apple manufactures very few products in the U.S., with the Mac Pro being a notable exception, CNBC adds. Meanwhile, the company announced in February a plan to invest USD 500 billion in the U.S. over the next four years, create 20,000 jobs, and build an AI server production facility in Houston, Texas.
Apple’s Expanding iPhone Production in India
As CNBC further notes, Apple is significantly expanding its manufacturing presence in India, aiming to produce roughly 25% of the world’s iPhones there within the next few years. This move is part of the company’s broader strategy to reduce its reliance on China, where about 90% of its flagship smartphones are currently assembled.
According to Bloomberg, Apple assembled USD 22 billion worth of iPhones in India during the 12 months ending in March—representing nearly a 60% increase from the previous year.
Foxconn, a key Apple supplier, is also expanding its presence in India. As mentioned by Reuters, India’s cabinet has approved a 37.06 billion rupee (USD 435 million) semiconductor facility to be jointly developed by Taiwan’s Foxconn and India’s HCL Group.
Read more
(Photo credit: The White House)