TLDR
- Apple stock slightly down after Trump criticized CEO Tim Cook for manufacturing in India instead of the US
- Trump wants Apple to build iPhones in America, continuing his “Made in USA” iPhone push
- Apple plans to source most US-bound iPhones from India by 2026 to avoid tariffs
- Analysts estimate US-made iPhones would cost $3,500 vs. $1,000 today
- Apple has committed to $500 billion investment and 20,000 new jobs in the US
Apple shares fell slightly yesterday after President Donald Trump publicly criticized CEO Tim Cook for the company’s manufacturing strategy in India. Speaking in Qatar, Trump made it clear he wants Apple to build products in the United States, not overseas.
“I had a little problem with Tim Cook yesterday. I said to him, Tim, you’re my friend. I treated you very good. You’re coming here with $500 billion but now here you are building all over India,” Trump said during his Qatar speech.
The President didn’t mince words about his expectations. “We’re not interested in you building in India. India can take care of themselves. They’re doing very well. We want you to build here,” he stated.
Apple stock dipped 0.9% in early trading, slightly underperforming the broader market.
The criticism targets Apple’s core strategy to avoid the worst impacts of Trump’s trade policies. The tech giant plans to ship most US-bound iPhones from India rather than China by the end of 2026.
This approach would allow Apple to claim India as the “country of origin” when iPhones enter the United States.
The Tariff Tango
The manufacturing shift comes as Trump has taken an aggressive stance on trade. While he recently reduced Chinese tariffs from 145% to 30% under a 90-day agreement, Indian imports still face a proposed 26% tariff.
These tariffs are currently paused until July to allow for negotiations.
For Apple, the math is clear. Moving production to India provides more tariff stability compared to China.
Apple has already told analysts that shipping devices from India and Vietnam instead of China will add about $900 million to the company’s costs for the current quarter.
The Made-in-America Dream
Trump’s push for American-made iPhones isn’t new. It’s been a consistent theme throughout his presidency.
However, analysts question whether US iPhone manufacturing makes financial sense. Wedbush analyst Daniel Ives estimates a US-made iPhone would retail for $3,500 compared to today’s $1,000 price tag.
Some Apple suppliers are expanding their US presence. Chip manufacturer Taiwan Semiconductor Manufacturing (TSM) has increased American operations.
But key manufacturing partner Foxconn has scaled back its planned $10 billion Wisconsin plant that was announced in 2017.
Apple has committed to substantial US investment. The company pledged to invest more than $500 billion and hire approximately 20,000 people in the United States over the next four years.
However, these jobs focus more on engineering, software development, and artificial intelligence rather than manufacturing.
Apple has made some moves toward US production. The company announced plans to build artificial-intelligence servers in Texas.
Reports suggest Apple is considering ways to bring iPhone production to the US, but the process could take years according to The Wall Street Journal.
The company didn’t immediately respond to requests for comment on Trump’s criticism.
Apple’s manufacturing strategy highlights the complex reality of global supply chains. While moving some production to avoid tariffs, complete reshoring to the US remains financially challenging.
For now, Apple investors seem to be taking Trump’s comments in stride. The stock’s minimal movement suggests shareholders aren’t overly concerned about immediate impacts on Apple’s business strategy.
The tech giant continues to navigate the complex landscape of international trade relations as it makes decisions about its global manufacturing footprint.
