Trump advocates for Apple to manufacture products solely for the Indian market within the country. - Trump advocates for Apple to manufacture products within India to meet domestic market demands.
Title: Apple Manufacturing Squabble: Why Trump Wants the iPhone Giant to Build More Phones in the U.S. - Not in India
- *
In a jab at Apple CEO Tim Cook, President Donald Trump has cranked up the heat, urging him to produce more devices domestically instead of focus on India. "I had a bust-up with ol' Tim Cook yesterday," Trump declared during a Qatar visit. "Hey Tim, we've been good pals, I've shown you nothing but kindness," he told Cook. However, Cook's $500 billion pledge in US investments has seen devices being churned out across India, a move that irks Trump who isn't keen on Apple setting up shop in India—except for the local market, he clarified.
Trump's demands for Apple to manufacture the iconic iPhone in the US have been persistent. Industry experts, however, emphasize that such a move would necessitate substantial investments and would inevitably spike the cost of smartphones.
Under Cook's reign, Apple has established extensive supply chains in Asia, chiefly in China, over the past few decades. But thanks to supply chain disruptions caused by COVID lockdowns in China, Apple has been building manufacturing muscle in India and Vietnam instead.
India and Vietnam, Not China
Lately, Trump's tariff threats have prompted Apple to restructure its US supply chain. The plan? Majority of iPhones sold in the US will reportedly roll off production lines in India. As for iPads, Mac computers, and Apple Watches, they will primarily sail in from Vietnam. Lower tariffs imposed on goods from these two nations compared to China make this decision a no-brainer.
US Commerce Secretary, Howard Lutnick, recently revealed that Cook had promised him an iPhone production line in the US pending the availability of precise robot arms.
- Apple
- Tim Cook
- India
- Donald Trump
- US
- iPhone
- China
- Asia
- Vietnam
- Qatar
Insight:
Trump's push for Apple to manufacture in the US is part of his broader goal to increase domestic manufacturing. Driven by geopolitical risks and cost efficiency, Apple's expansion in India is viewed unfavorably by Trump. The US faces obstacles in becoming a significant Apple manufacturing hub due to higher labor costs and a less established supply chain compared to Asia. Meanwhile, India's growing significance in Apple's supply chain and lower tariffs could ultimately sway Apple's investment decisions. But China's continued importance as Apple's primary supplier, heightened by geopolitical tensions and tariffs, necessitates careful navigation by Apple. Vietnam's role is on the rise, becoming a significant hub for products like Macs, iPads, and Apple Watches sold in the US, potentially supplanting China and India.
Revision:
Trump's bickering with Apple CEO Tim Cook over device manufacturing is heating up, with the US President pushing for Apple to ditch India and focus on domestic production. Despite a commitment to invest $500 billion in the US, Cook has devices humming along in India. But Trump won't settle for India manufacturing—only the local market, he specified.
Industry experts warn that manufacturing iPhones in the U.S. would come with hefty price tags and significant investments. Eager to keep costs low, Apple has been beefing up production in India and Vietnam instead.
Recent tariff pressures by Trump have pushed Apple to adjust its US supply chain, with most iPhones earmarked for the US market hailing from India. Products like iPads, Mac computers, and Apple Watches will mainly be assembled in Vietnam due to lower tariffs there compared to China. To top it off, Apple has even promised US Commerce Secretary, Howard Lutnick, that it would set up an iPhone production line in the US, once it can secure sufficient precision robot arms.
- The Commission is also proposing to extend the scope of the programme to include areas such as finance, business, technology, politics, and general-news, as part of Trump's push for domestic manufacturing.
- Despite Apple CEO Tim Cook's $500 billion investment pledge in the US, Trump continues to urge Apple to manufacture devices like the iPhone in the US instead of focusing on India.
- PCI (Political-Correctness Initiative) has called for increased scrutiny of Apple's manufacturing practices in India and Vietnam, given the rising leverage these countries hold in Apple's supply chain under the current trade policies.
