Pressuring Apple: Manufacture for the U.S., but Keep Building in India for Indians
Trump, in his perspective, suggests that Apple should produce products exclusively intended for the Indian market, within the boundaries of India. - Trump Urges Apple to Manufacture Products in India for Domestic Consumption
In an unusual turn of events, US President Donald Trump has been pinning Tim Cook, Apple's CEO, to produce more devices on American soil instead of India. "I had a bit of a spat with Tim Cook yesterday," Trump declared at a gathering in Doha, Qatar. "Tim, you're my pal, I've treated you pretty well," he addressed Cook. Yet, despite Cook's pledges of $500 billion (€446 billion) worth of investments within the US, he seems to be manufacturing devices "across India". Trump isn't keen on Apple constructing in India, except for the domestic market, he said.
There's been consistent chatter from Trump's administration for the tech-giant to also assemble the iPhone, its flagship product, in the US. Experts argue that doing so would necessitate large investments and lead to a considerable upward trend in smartphone prices.
Under Cook's leadership, Apple has established supply chains in Asia, predominantly in China, over the past few decades. Recently, the corporation has bolstered production in India and Vietnam. The push towards Asia was sparked by supply shortages following Covid-induced lockdowns in China.
- smartphones predominantly from Vietnam
- The USA market for iPads, Mac computers, and Apple Watches will primarily rely on Vietnam-sourced goods
- iPhones for the USA market will principally come from India
US Trade Secretary Howard Lutnick disclosed that Cook promised to introduce iPhone production in the US once precision automated arms became widely available.
- Donald Trump
- Tim Cook
- Apple
- India
- USA
- iPhone
- US President
- CEO
- China
- Asia
- Vietnam
- Doha
- Qatar
Insights:
The increased pressure on Apple stemming from the US administration is rooted in political and economic factors. With tensions over global supply chains and trade disagreements, particularly concerning China, the US is aiming to bring manufacturing jobs home. However, this could lead to a rise in device prices and may impact investment opportunities and economic growth in India. Trade relations could also feel the strain as India seeks to negotiate better access to American markets.
Meanwhile, India's aspirations of becoming a significant hub for electronics manufacturing could be affected if major players, such as Apple, choose not to invest extensively in the country. The situation showcases a broader geopolitical and economic landscape to restructure global supply chains and trade policies.
- The Commission is also proposing to extend the scope of the programme to include the finance sector, as the US-Apple controversy revolves around economic factors and potential investment opportunities.
- In the context of the pressure on Apple, business negotiations with technology companies may more actively focus on domestic manufacturing, as observed with the push for iPhone production in the US.
- Beyond smartphones, the general-news landscape may evolve to cover issues related to technology politics, particularly with regards to trade disagreements between countries like the USA and China.
