Apple Faces Tariff Pressure Over Overseas Production
U.S. President Donald Trump has once again issued a stern warning to Apple Inc., criticizing the tech giant’s growing manufacturing presence in India. In a post shared on his social media platform, Truth Social, Trump declared that any iPhones sold in the United States must be manufactured domestically — not in India or any other foreign country.
This marks a renewed push from Trump to bring Apple’s production facilities back to American soil. He previously expressed similar sentiments, telling Cook that setting up factories in India was unnecessary, claiming, “India can take care of itself.”
Trump to Apple: “Build in America or Pay the Price”
During a recent business conference in Doha, Qatar, Trump shared details of his conversation with Cook. “Tim, you’re my friend, and you’re bringing in $500 billion in value, but now I hear you’re expanding production in India,” Trump said. “If you care about India, produce for them. But for the U.S., make your products here.
Trump criticized India’s high tariff environment while noting that the country offered a no-tariff deal to Apple for U.S.-bound products. Despite this, he insisted that production must happen on American soil.
Apple Expands Indian Operations Despite U.S. Pressure
Despite Trump’s demands, Apple is significantly ramping up its manufacturing in India. Foxconn, Apple’s largest contract manufacturer, has invested approximately $1.49 billion (₹12,700 crore) into a Tamil Nadu-based unit in recent days. This investment, made through its Singapore subsidiary, underscores Apple’s commitment to India as a long-term manufacturing hub.
50% of the iPhones sold in the U.S. are now produced in India.
Apple CEO Tim Cook revealed in a recent interview that 50% of the iPhones sold in the U.S. are now produced in India. He also highlighted that other Apple products such as AirPods and Apple Watches are predominantly made in Vietnam. Cook noted that by the April–June quarter, India would become the country of origin for most iPhones sold in the U.S.
Why Apple Is Betting Big on India
Apple’s aggressive shift to Indian manufacturing is driven by several key factors:
1. Diversifying the Supply Chain
Apple aims to reduce its reliance on China due to geopolitical tensions, trade disputes, and previous COVID-19 disruptions.
2. Incentives from Indian Government
India’s “Make in India” campaign and Production Linked Incentive (PLI) schemes offer significant financial incentives. These programs have attracted investments from Apple’s key partners like Foxconn and Tata.
3. Rapidly Growing Smartphone Market
India is among the fastest-growing smartphone markets globally. By manufacturing locally, Apple can better meet rising domestic demand and boost its current 6–7% market share.
4. Export Opportunities
India’s favorable trade terms allow Apple to export roughly 70% of its locally produced iPhones. In 2024, exports surged to $12.8 billion (₹1.09 lakh crore), with further growth projected.
5. Skilled Workforce and Infrastructure
While India’s labor force still trails China in experience, rapid improvements are underway. Foxconn and other partners are investing in employee training and expanding facilities, including a $2.7 billion (₹23,139 crore) plant in Karnataka.
Apple to Double iPhone Production in India by 2026
According to The Financial Times, Apple plans to double its iPhone production capacity in India by 2026, potentially exceeding 60 million units annually. This shift would significantly reduce dependence on Chinese manufacturing, which currently accounts for 28% of Apple’s global iPhone shipments, per IDC.
one out of every five iPhones sold globally is made in India
Between March 2024 and March 2025, Apple produced iPhones worth $22 billion (₹1.88 lakh crore) in India — a 60% increase from the previous year. Of this, $17.4 billion (₹1.49 lakh crore) worth of iPhones were exported. Currently, one out of every five iPhones sold globally is made in India, primarily in factories located in Tamil Nadu and Karnataka.
Foxconn leads this production, supported by other Apple suppliers like Tata Electronics and Pegatron.
Apple’s India Revenue Hits $8 Billion Despite Low Market Share
In the 2024 fiscal year, Apple recorded smartphone sales worth $8 billion in India. Despite holding only 8% of the market, the iPhone remains a premium product, especially among the emerging Indian middle class — a key driver of future growth.
