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During a recent conversation, U.S. President Donald Trump expressed dissatisfaction with Apple (NASDAQ: AAPL) CEO Tim Cook regarding the company’s increasing focus on India as a manufacturing base. Trump also criticized India’s traditionally high tariffs on imported goods and urged Apple not to grow its manufacturing presence in the country—unless the expansion was specifically meant to supply the Indian market.
Despite the political noise, Apple appears unfazed. The Cupertino, California-headquartered tech giant is reportedly pressing forward with its strategy to increase production in India, particularly for its high-end iPhone models. The upcoming iPhone 17 series Pro variants are set to be manufactured in larger volumes in India this year. This move signals a deeper commitment to the South Asian nation as a core component of Apple’s global supply chain, especially as demand for the Pro models remains strong in the U.S. and India.
Trump said, “I had a little problem with Tim Cook yesterday. I said to him, my friend, I am treating you very good. You are coming up with $500 billion but now I hear you are building all over India. I don’t want you building in India. You can build in India, if you want to take care of India, because India is one of the highest tariff nations in the world, so it is very hard to sell in India. I said Tim, we are treating you really good, we put up with all the plants you built in China for years. We are not interested in you building in India. India can take care of themselves.”
But Apple isn’t paying any heed to Trump’s pronouncements. Apple’s key manufacturing partner in India, Foxconn, has already initiated trial runs of the iPhone 17 series in its Indian facilities. Tata Electronics is also contributing by producing critical components like casings. Apple started producing its premium iPhone Pro models in India last year.
Apple’s manufacturing push in India is part of a broader strategy to diversify away from China, particularly after production disruptions during the COVID-19 pandemic highlighted the risks of over-reliance on a single country. Over the past year, Apple assembled approximately $22 billion worth of iPhones in India, representing a 60% year-over-year increase. Roughly 20% of all iPhones are now made in India.
Most iPhones manufactured in India are assembled at Foxconn Technology Group’s facility in southern India. Tata Group’s electronics division, having acquired Wistron Corp. and overseeing Pegatron Corp.’s operations, also plays a major role as a key supplier. Apple exported iPhones worth an estimated $17.4 billion from India in the fiscal year ending March 2025, according to the country’s IT minister, Ashwini Vaishnaw.
The tech giant now manufactures its full iPhone lineup in India, including the premium titanium-bodied Pro editions. This expansion is supported in part by financial incentives from the Indian government, which is aiming to establish the country as a global electronics manufacturing powerhouse under Prime Minister Narendra Modi’s leadership.
To further boost local production capabilities, India announced an additional $2.7 billion in subsidies to develop its electronics and semiconductor sectors. Apple currently holds nearly 8% of India’s smartphone market, with its annual sales in the region reaching close to $8 billion in the 12 months ending in March 2024.
Interestingly, Trump hosted the Prime Minister of India for an official working visit in Washington, D.C., on February 13. The two countries have set a target of more than doubling bilateral trade to $500 billion by 2030. The leaders announced plans to put together the first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA) by the fall of 2025. The two leaders also announced an initiative focused on advancing critical and emerging technologies such as artificial intelligence (AI), semiconductors, quantum, biotechnology, defense, energy, and space.
In February, Apple unveiled plans to invest over $500 billion in the United States over the next four years. The initiative includes building a new factory in Texas, doubling its U.S. Advanced Manufacturing Fund, launching a manufacturing academy, and ramping up investments in artificial intelligence and silicon engineering.
While Trump has consistently pushed for American companies like Apple to bring more manufacturing back to the U.S.—reflecting his broader agenda to boost domestic investment—Apple’s growing footprint in India suggests a wider, long-term strategy focused on global diversification and supply chain resilience. By deepening its manufacturing footprint in India, Apple is not only reducing its dependence on a single country but also positioning itself to better navigate global economic shifts, political tensions, and supply chain disruptions. This approach underscores Apple’s commitment to balancing domestic expectations with global operational flexibility.
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