Donald Trump has reportedly urged Apple CEO Tim Cook to prioritize manufacturing in the United States over expanding production in India. This request comes as Apple is actively working to diversify its iPhone production, shifting some of it to India to mitigate risks associated with trade tensions between the U.S. and China.
During an event in Qatar, Trump recounted a conversation he had with Cook, stating, "I had a little problem with Tim Cook yesterday,". He conveyed his preference for Apple to build in the U.S., saying, "I said to him, 'Tim, you're my friend, I've treated you very good. You're coming in with $500 billion, but now I hear you're building all over India. I don't want you building in India". Trump suggested that Apple could manufacture in India for the Indian market but that iPhones sold in the U.S. should be made in America. He emphasized, "We're not interested in you building in India, India can take care of themselves, they're doing very well. We want you to build here". Trump also claimed that India had offered to drop all tariffs.
Cook had previously indicated that Apple anticipates the "majority" of iPhones sold in the U.S. would originate from India in the third quarter of the year. He also noted that "almost all" iPads, Macs, Apple Watches, and AirPods sold in the U.S. would be made in Vietnam, while China would remain the primary country of origin for products sold outside the U.S.
Apple has been expanding its manufacturing capabilities in India, with plans to move a quarter of its total iPhone production there in the coming years. This move is seen as a way to reduce reliance on China, which has been the primary hub for Apple's manufacturing. However, the cost of manufacturing and labor in the U.S. remains a significant hurdle for companies like Apple, making it difficult to abandon their international supply chains.
In February, Apple announced plans to invest $500 billion to boost production in the U.S., including building new manufacturing facilities and a manufacturing academy across several states. This investment includes a new "advanced manufacturing" facility in Houston for servers geared toward Apple Artificial Intelligence. It remains to be seen how Apple will balance these U.S. investment plans with its ongoing diversification efforts in India.