Apple has been gradually shifting some of the production of the iPhone from China to India. However, a recent statement by US President Donald Trump may try to derail those plans.
This week, Trump said he “had a little problem” with Apple CEO Tim Cook. “He is building all over India. I don’t want you building in India.”
While the announcement of reciprocal tariffs, which are particularly high in China, has likely accelerated Apple’s plans to move some iPhone production out of China, the company had already been gradually making a shift since COVID-19.
In 2019, an estimated 99% of iPhones came from China, according to the New York Times. But last year around 13% of iPhones were made in India, a number that was expected to double by the end of 2026.
While this shift had already begun before Trump’s second term in office, the announcement of reciprocal tariffs (which also saw Apple airlift 600 tons of iPhones from India to the US to beat them) likely solidified those plans.
Initially, China faced a 145% tariff and India a 27% one. Both have been temporarily lowered to allow time for the nations to negotiate trade, China down to 30% and India down to 10%. An exemption for the China tariffs was also granted for smartphones.
When Trump announced the reciprocal tariffs, the president said that the move would bolster American manufacturing and create jobs. Some analysts, however, warn that moving manufacturing to the US would likely take years, while the higher wages would also likely increase prices.
One analyst estimated that an iPhone made in the US would cost around $3,500.
Other companies have warned that a proposed tariff on semiconductors would make manufacturing cameras in the US just as expensive.
Blackmagic, for example, said that it was placing plans for a US factory on hold after the Trump Administration began investigating a tariff on semiconductors, which are similarly an integral component of smartphone manufacturing.
While Apple hasn’t shared any plans for US manufacturing, the tech giant did announce a $500 billion investment in the US. Those facilities and jobs, however, are not centered around manufacturing.
The estimated 20,000 jobs the investment will bring include positions in research and development, engineering, software, and artificial intelligence.
Apple CEO Tim Cook was one of several tech leaders who personally donated to Trump's inauguration.
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