Here’s why Apple may ignore Trump’s ‘Quit India’ call

During his recent trip to Qatar, the US President made two startling claims that could be significant for India. First, he claimed that India has offered to reduce tariffs to zero for imports from the US. Second, he revealed details of his conversation with Apple CEO, Tim Cook.

In a media interaction, he said “I had a little problem with Tim Cook yesterday. I said to him, ‘My friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India.’ I don’t want you building in India.”

But is Apple going to adhere to the US President’s impromptu request and pull out from India? Let's explore the facts.

India is Apple’s strongest China alternative

India has emerged as Apple’s plan B to China. Even though around 80% iPhones are made in China, with ongoing trade tensions, tariff-related challenges and COVID lockdown struggles, Apple understood that putting all its eggs in one basket (read: China) isn't sustainable. Hence, even after spending decades building a supply chain in China, its focus is now on aggressive global diversification and moving to alternatives like India and Vietnam.

Rapid scale up in India

What’s noteworthy is that Apple has scaled up its manufacturing in India significantly. As per a Bloomberg report, Apple made iPhones worth $22 billion in India in FY25, out of which approximately $17 billion worth of iPhones were exported globally. This means that one out of every five iPhones sold globally is now made in India.

Apple is also getting support from its local suppliers like Foxconn and Tata Electronics, who are helping it achieve record shipments. The former alone was responsible for shipping smartphones worth $1.3 billion, as per a Reuters report. Recently, Foxconn obtained a nod from the Indian government to set up a semiconductor plant in Uttar Pradesh in a joint venture with HCL. This will draw an investment of ₹3,700 crore.

The cost factor

Another factor at play, and a crucial one at that, is cost. Experts say that shifting manufacturing to America may not be the best fiscal decision for the tech giant. Made in the US iPhones could cost up to $3,500 owing to expensive logistics. Now, compare it with India, where making the latest iPhone 16 costs Apple less than $500l.

Manufacturing + market

And how can one ignore India’s massive market power? India is currently Apple’s 4th-largest market after China, America and Japan. Just in 2024 alone, Apple shipped over 12 million units to India. Add to that Apple’s growing share in the country's premium smartphone segment. Clearly, India matters a great deal to Apple's long-term plans, both in terms of manufacturing and the market.

Now, all eyes are on Apple’s CEO, Tim Cook. Will he bow down to the US President’s quit India ‘request’, or will he take a decision based on ground realities - cost, supply chain, skilled labour availability and market?