President Donald Trump has asked Apple CEO Tim Cook to increase domestic iPhone production, as the tech giant accelerates its manufacturing shift from China to India.
Bloomberg reports that in a recent conversation with Apple CEO Tim Cook, President Donald Trump expressed his displeasure with the company’s plans to expand iPhone production in India. Trump, who is currently on a state visit to Qatar, said, “I had a little problem with Tim Cook yesterday. He is building all over India. I don’t want you building in India.”
The president’s comments come as Apple is working to move a significant portion of its iPhone production out of China and into India by the end of next year. This shift is part of Apple’s strategy to mitigate risks associated with tariffs and geopolitical tensions between the US and China. Currently, most iPhones are manufactured in China, with no smartphone production taking place in the U.S.
According to Trump, as a result of their discussion, Apple will be “upping their production in the United States.” However, building iPhones from scratch in the U.S. may pose a challenge. The supply chain for iPhones has been concentrated in China for years, and Apple has only recently begun establishing local partnerships in India.
Tarun Pathak, research director at tech analytics firm Counterpoint, sees Trump’s statement as a familiar tactic, saying, “He wants to push Apple to localize more and build a supply chain in the U.S., which is not going to happen overnight. Making in the U.S. will also be much more expensive than assembling iPhones in India.”
Trump did, however, suggest that he is fine with Apple building its products in India for the Indian market, stating, “You can build in India if you want, to take care of India.”
The president also discussed tariff negotiations with India, noting that the South Asian country has made an offer to drop import taxes on U.S. goods. India has one of the highest tariff barriers in the world, making it very difficult to sell American products in the planet’s most populous country.
The majority of India-made iPhones are assembled at Foxconn Technology Group’s factory in southern India. Tata Group’s electronics manufacturing arm, which recently acquired Wistron Corp.’s local business and runs Pegatron Corp.’s operations in India, is another key supplier. Both Tata and Foxconn are constructing new plants and increasing production capacity in southern India.
In the 12 months through March, Apple assembled $22 billion worth of iPhones in India, representing a nearly 60 percent increase in production compared to the previous year.
Read more at Bloomberg here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
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