Washington, D.C. - May 15, 2025
In a speech delivered during his visit to Qatar, President Donald Trump announced that he has pressed Apple CEO Tim Cook to relocate iPhone manufacturing from India to the United States. Trump claimed that Apple is now planning to "up production in the United States," signaling a potential shift in the tech giant’s global supply chain strategy.

Apple has significantly expanded its manufacturing operations in India over recent years, assembling approximately $22 billion worth of iPhones in the fiscal year ending March 2025, a 60% increase from the prior year. India accounted for 18–20% of Apple’s global iPhone production in 2024, with 14–15 million units exported to the U.S. This move has been driven by Apple’s efforts to diversify its supply chain away from China, especially amid escalating U.S. tariffs on Chinese imports, currently set at 145%.

However, Trump’s call for domestic production comes with challenges. Analysts estimate that manufacturing iPhones in the U.S. could inflate costs significantly, potentially raising the price of an iPhone to as much as $3,500 due to higher labor and operational expenses. Apple’s supply chain remains heavily rooted in Asia, with 80% of iPhones still assembled in China. Relocating the entire ecosystem to the U.S. could take years and require substantial investment.

While Apple announced a $500 billion investment in the U.S. earlier this year, focused on AI servers, Apple TV production, and R&D, there has been no official confirmation from the company regarding a shift in iPhone manufacturing. Industry experts remain skeptical, noting that Apple’s partnerships with Foxconn and Tata Group in India, coupled with favorable tariff policies (a temporary 90-day pause on India’s 26% tariff as of April 2025), make India a strategic hub for Apple’s growth.

As the debate over domestic manufacturing intensifies, all eyes are on Apple’s next move. Will the tech giant pivot to U.S.-based production, or continue leveraging India’s growing manufacturing capabilities? For now, Apple has not commented on Trump’s claims, leaving the industry awaiting further clarity.