Tuesday, 02 January 2024 12:17 GMT

Media reports Apple challenges Trump with India production schemes


(MENAFN) Apple Inc. is moving forward with plans to significantly increase its iPhone manufacturing in India, despite US President Donald Trump's request to scale back operations there. According to the Times of India (TOI), the tech giant is set to invest approximately $2.5 billion to ramp up production, aiming to produce 60 million iPhones annually, up from the current 40 million.

In May, Trump expressed concerns about Apple’s expansion in India, telling Apple CEO Tim Cook that he did not want the company to manufacture there. “I said to him [Cook], ‘my friend, I treated you very well. You’re coming here with $500 billion, but now I hear you’re building all over India. I don’t want you building in India,’” Trump told reporters.

Despite these remarks, Cook stated during Apple’s earnings call in May that a majority of the iPhones sold in the US would be made in India. According to an Indian government official, Apple’s expansion plans will proceed as originally planned.

While imports from India to the US are set to become more expensive starting Wednesday, with Trump’s 50% tariffs taking effect, smartphones, computers, and electronics are exempt from these additional taxes. Last year, Apple exported $17 billion worth of iPhones from India and captured a strong market share in the premium smartphone segment in the country.

Industry analysts predict that with iPhone sales in the US expected to exceed 60 million annually by the end of 2026, Apple will need to double its production capacity in India to meet demand.

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