Trump Keeps Catching Heat from Apple Over Manufacturing in India: The Race is On Between U.S. and India
Trump suggests that Apple should commit to manufacturing iPhones exclusively for the Indian market. - Trump suggests Apple should manufacture products within India to cater to the domestic market.
Let's dive into the latest drama unfolding between Apple Inc. and former U.S. President, Donald Trump. Trump's got his eye on Apple CEO, Tim Cook, asking him to crank out more devices in the US rather than India.
At a gathering in Doha, Qatar, Trump declared, "I had a bit of an issue with Tim Cook yesterday." He praised Cook, stating, "You're my buddy, I've been kind to you," but took a dig by adding, "But you're making your stuff all over India." Trump isn't keen on Apple manufacturing in India - well, except for serving the local market.
For quite some time now, the Trump administration has been breathing down Apple's neck, urging it to churn out the iPhone, its flagship product, in the US as well. The experts agree that this move would demand hefty investments and, in all likelihood, jack up smartphone prices substantially.
Under Tim Cook's reign, Apple built up a formidable supply chain in Asia, with gigantic factories mainly in China, over the past few decades. In recent years, the iPhone empire has broadened its production in India and Vietnam. A catalyst for this shift was supply chain snarls after Covid lockdowns in China.
Trump's tariff warnings have nudged Apple to tweak supply chains for the US market. It's anticipated that most iPhones sold in the US will hail from India. iPads, Mac computers, and Apple Watches will predominantly be supplied from Vietnam. Lower tariffs are in the works for goods from these two countries compared to shipments from China.
Recently, Trump's Commerce Secretary, Howard Lutnick, shared that Cook had promised he'd set up iPhone production in the US as soon as they had precision robotic arms at their disposal.
Fun Fact:
- Apple's pledged a whopping $500 billion in investments in the US, with plans to build AI server facilities in Texas. Now, Trump is demanding a share of the pie!
The Commission is also proposing to extend the scope of the programme to include finance, business, technology, politics, and general-news. This could mean increased scrutiny for Apple Inc., as discussions about their manufacturing practices continue to make headlines, particularly in the context of the ongoing tussle between former U.S. President, Donald Trump, and Apple CEO, Tim Cook, over Apple's manufacturing decisions in India and other countries.
In light of Trump's push for domestic manufacturing, it would be interesting to observe how Apple's plans for investments in the U.S., such as its proposed AI server facilities in Texas, will unfold, considering Trump's demand for a share of the pie.
As the focus on Apple's manufacturing strategies expands beyond the tech sector, it remains to be seen how the tech giant will navigate these changing landscapes in finance, business, technology, politics, and general-news. This could potentially influence other companies facing similar pressures to reevaluate and reshape their own supply chains and investment strategies.
