[New Delhi (India) = Pragya Awasthi Correspondent] It has been reported that U.S. President Donald Trump, who is on a state visit to Qatar, requested Apple CEO Tim Cook to stop building production plants in India. This move is noteworthy as it puts a brake on Apple’s plan to diversify production in India to reduce dependency on China.
According to local media reports on the 16th (local time), President Trump stated on the 15th, “I had a bit of an issue with Tim Cook yesterday,” and added, “He is building plants all over India, but I told him I don’t want him to produce in India.” Trump further mentioned, “We will make Apple increase production in the U.S.,” emphasizing, “We are not interested in Apple building factories in India. India can do well on its own.”
Trump also noted, “India has the highest tariff barriers in the world, and it is very difficult to sell American products in the Indian market,” adding, “However, India has proposed removing tariffs on U.S. products,” indicating a willingness to negotiate trade terms.
Industry analysts expect that Trump’s latest remarks may interfere with Apple’s plan to produce most of the iPhones for U.S. supply in India by the end of next year. Currently, Apple produces most of its iPhones in China and does not have any smartphone production in the U.S.
Due to China’s strict lockdown measures in response to COVID-19 and the trade conflict between the U.S. and China, Apple is diversifying its production bases. In particular, Apple and its partners are in the process of building new production facilities in southern India.
Apple assembled approximately $22 billion (30.77 trillion KRW) worth of iPhones in India over the 12 months leading up to March 2023, an increase of nearly 60% from the previous year. The principal production facility in India is operated by Foxconn, while Tata Group is expanding its production capacity by acquiring Wistron and Pegatron’s Indian subsidiaries. If Apple increases production in the U.S., it is expected to significantly impact the restructuring of the global supply chain.