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Introduction:
In a striking statement that highlights the intricate dance between global business strategies and international politics, former US President Donald Trump revealed he had a tense conversation with Apple CEO Tim Cook. The reason? Trump asked Cook to curb Appleās rapid expansion in India. As tensions between the US and China pushed American tech giants to explore other manufacturing hubs, India emerged as a key player. But now, with billions of dollars at stake and shifting trade dynamics, Trumpās intervention brings a new layer of complexity to Appleās international production game plan.
Appleās Expansion in India Faces Pushback from Trump
During a press briefing in Doha, former President Donald Trump openly expressed dissatisfaction with Appleās expanding operations in India. He recounted a conversation with Apple CEO Tim Cook, saying, āI told him, my friend, youāre coming up with \$500 billion, but now I hear youāre building all over India. I donāt want you building in India.ā Trumpās reasoning? India remains one of the most tariff-heavy markets in the world, making it difficult for American companies to thrive without giving up too much.
Apple has been scaling up production in India, especially with the help of local partnerships with Foxconn and the Tata Group. Plants in Tamil Nadu and Karnataka have been critical to this expansion. The company reportedly manufactured \$22 billion worth of iPhones in India in the fiscal year ending March 2025 ā a 60% increase from the previous year. Around 40ā45 million iPhones were produced in India in 2024 alone, with roughly 15 million exported to the US, 13 million to other global markets, and 12 million sold locally in India.
India has climbed to become Appleās fourth-largest market, just behind the US, China, and Japan. The company has hit record revenue milestones in India, including a staggering \$10 billion in iPhone sales during 2024. Appleās shift to India was partly driven by US-China trade tensions, which led the tech giant to relocate the manufacturing of US-bound iPhones from China to India.
In a temporary reprieve, both China and the US have agreed to reduce retaliatory tariffs by 115% for a 90-day period. China will now tax US goods at 10%, while the US will place a 30% tariff on Chinese imports ā a move seen as a cooling-off period amid ongoing trade disputes.
What Undercode Say:
Trumpās comments offer a fascinating window into the ongoing tug-of-war between nationalism and globalization. On one hand, Appleās expansion into India aligns with the global trend of diversifying supply chains, especially amid volatile US-China relations. On the other, Trumpās appeal to limit this shift underscores a protectionist stance aimed at boosting domestic manufacturing and keeping American tech investments within US borders.
Appleās move to India
But Trumpās intervention complicates things. His statement, though unofficial now, still holds political weight and could signal similar sentiments if he returns to a position of influence. It also raises questions: Can a company like Apple ignore geopolitical pressure? Is India prepared to handle the full weight of Appleās manufacturing needs without facing diplomatic repercussions?
From a business standpoint, India offers massive upside. The growing middle class, improving infrastructure, and government eagerness to attract foreign tech investments make it an ideal partner. But itās not without challenges ā high tariffs, bureaucratic red tape, and regional political risks remain major hurdles.
Apple has to walk a tightrope. Scaling back in India could disrupt its supply chain strategy and open the door for competitors like Samsung or Xiaomi to capture more market share. Moving too aggressively could spark political backlash in the US or strain US-India relations if domestic political rhetoric paints India as a threat to American jobs.
In the bigger picture, this isnāt just about Apple. Itās about how global tech companies will navigate a new world order where political leaders increasingly want to dictate corporate strategies. The balance between efficiency, market access, and political favor will be the key battleground of the next tech decade.
Fact Checker Results:
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Trumpās comments were made during a press event in Doha.
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Apple has significantly increased iPhone production in India in recent years.
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India is now Appleās fourth-largest market with \$10 billion in 2024 iPhone sales š±šš®š³.
Prediction:
Despite political pushback, Apple is likely to continue expanding in India. The cost advantages, market potential, and strategic need to diversify away from China outweigh the risks. However, Apple may adopt a more balanced public stance, ensuring it doesnāt provoke US policymakers while deepening its roots in India. Expect future announcements to emphasize job creation in both the US and India, aiming to satisfy both markets diplomatically and economically.
References:
Reported By: zeenews.india.com
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