In a move that has sent shockwaves through the tech industry, US President Donald Trump has publicly criticized Apple’s decision to source production of US-bound iPhones from India, citing concerns over its impact on American interests.
A ‘Little Problem‘ with Tim Cook: Trump Rebukes Apple over India Production
The US president expressed his discontent with Apple’s plans to source production of US-bound iPhones from India, citing concerns that the move would be detrimental to American interests.
The Complex Manufacturing Process Behind iPhones
The manufacturing process behind iPhones involves more than 1,000 components sourced from all over the world. Analysts estimate that about 90% of iPhones are assembled in China, where Apple has built numerous plants over the years. However, due to trade tensions between Washington and Beijing, production in India has increased.
Apple's iPhone manufacturing process involves a complex global supply chain.
The initial design and development occur in California, followed by production in China, primarily in Zhengzhou and Shanghai.
Foxconn, a Taiwanese company, is the primary manufacturer, producing over 70% of iPhones.
Other manufacturers include Pegatron and Wistron.
The assembly process involves multiple stages, including component installation, testing, and packaging.
Trump‘s Conversation with Tim Cook
During a meeting with Apple CEO Tim Cook in Qatar, President Trump expressed his concerns about the company’s plans to shift assembly of iPhones for the US market from China to India. ‘I said to him: ‘Tim you’re my friend. You’re coming here with $500bn but now you’re building all over India. I don’t want you building in India,” Trump recalled.
Tim Cook is an American business executive who has been the CEO of Apple Inc. since 2011.
Prior to his role at Apple, he served as the company's Chief Operating Officer (COO) from 2007 to 2011.
Cook joined Apple in 1998 and held various leadership positions within the company.
He graduated with a Bachelor's degree in Industrial Engineering from Auburn University and an MBA from Duke University.
Under Cook's leadership, 'one of the world's most valuable companies' , known for its innovative products such as the iPhone and MacBook.
Trump emphasized that the US has treated Apple well, allowing the company to build numerous plants in China without significant issues. He urged Cook to focus on building production facilities in the United States instead, stating that ‘we’re not interested in you building in India, India can take care of themselves.‘
Donald Trump was born on June 14, 1946, in Queens, New York.
He graduated from the University of Pennsylvania and later served as a real estate developer and businessman.
Trump's presidential campaign focused on issues such as immigration reform, tax cuts, and healthcare.
He won the Republican nomination and went on to defeat Hillary Clinton in the 2016 presidential election.
During his presidency, Donald Trump implemented policies like the Tax Cuts and Jobs Act and withdrew from international agreements like the Paris Climate Accord.
His term was marked by controversy and polarization.
The Challenges of Moving Production to the US
Experts have warned that moving the assembly of Apple’s top-selling iPhone product to its home country would be impractical and costly. A recent estimate by Wedbush Securities suggests that the cost of an iPhone would treble if assembly were to be shifted to the US.
Apple was approached for comment on Trump‘s statements, but no response was provided.
India’s Trade Offer
The US president also mentioned that India had offered a trade deal that proposed ‘no tariffs‘ for American goods. New Delhi is seeking to clinch a trade deal with the US within the 90-day pause announced by Trump on tariff hikes for trading partners.
