Apple makes big statement after Trump’s objection to make iPhone in India, says…
US President Donald Trump on Thursday said he has asked Apple CEO Tim Cook to stop producing iPhones in India, and rather make them in the US. Notably, most of its iPhones are made in China and sold in US.
However, not bucking down to Trump’s pressure, Apple reiterated its ‘Make in India’ commitment assured that Apple’s investment plans for India are intact and the company proposes to make the country a major manufacturing base for its products.
Trump, who in his second term as President is pushing for local manufacturing, said Apple will be “upping their production in the United States.” Apple has no smartphone production in the US – most of its iPhones are made in China while facilities in India produce around 40 million units per year (about 15 per cent of Apple’s annual output).
What Trump said
“I had a little problem with Tim Cook yesterday,” Trump said of his conversation with Apple’s CEO, in Doha. “I said to him, Tim, you’re my friend. I treated you very well. You’re coming in with USD 500 billion (investment). But now I hear you’re building all over India. I don’t want you building in India if you want to take care of India.” Trump suggested that Apple could make its products in India for the Indian market. But Made in India iPhones being sold in the US has to stop. “You can build in India if you want, to take care of India.”
Why India?
Cheaper skilled labour and availability of precision engineered product supply chains have driven Apple to China and India for manufacturing iPhones. American labour and manufacturing in comparison is expensive.
India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn’s factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp’s operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to raise iPhone production.
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