Trump Critiques Apple's Growth Strategy in India

President Donald Trump is urging Tim Cook, the CEO of Apple, to rethink the company’s strategy of moving iPhone production to India.

During a speech in Qatar on May 15, Trump expressed his concerns about this shift. He mentioned having a “small issue” with Cook and emphasized that he prefers Apple to focus on manufacturing in the U.S., especially since the company has committed to investing $500 billion into American manufacturing over the next five years.

“We’re not keen on you setting up shop in India; they can manage just fine without you — we want you here,” Trump stated.

Currently, around 90% of Apple’s iPhones are produced in China. However, back in March, Apple announced plans to significantly increase its production capacity in India by 2026. the country presents an appealing alternative for Apple due to its geographical proximity to China, lower labor costs, and a more favorable diplomatic stance with the U.S. Additionally, Apple aims to boost its smartphone sales within India itself. Tariffs imposed on iPhones imported from China have made these devices unaffordable for many consumers among India’s vast population.

While Trump’s insistence on domestic production is clear, financial analysts caution that relocating manufacturing could lead to hefty expenses for both Apple and American buyers. Estimates vary widely; Bank of America analyst Wamsi Mohan suggested that an iPhone made entirely in America might see price hikes of around 25% due solely to increased labor costs. on a more extreme note, Wedbush Securities analyst Dan Ives warned that such an iPhone could soar up to $3,500 and indicated that shifting just 10% of Apple’s supply chain back home could require an investment upwards of $30 billion over three years.