Not China, not the United States: This is the country that will make iPhones for Apple

In May 2025, tensions escalated between U.S. President Donald Trump and Apple CEO Tim Cook over Apple’s decision to shift iPhone production for the U.S. market from China to another country: India.

During a speech in Qatar, Trump expressed dissatisfaction with Apple’s move, urging the company to manufacture domestically instead of abroad. He emphasised his long-standing goal to bring manufacturing jobs back to the U.S., criticising Apple’s increasing reliance on Indian production despite a $500 billion investment plan in the U.S. being unveiled.

“I had a little problem with Tim Cook yesterday,” Trump said in Qatar. “I said to him, ‘Tim, you’re my friend. I treated you very good. You’re coming in with $500 billion.’ But now I hear you’re building all over India. I don’t want you building in India.’

The price of an iPhone could rise to $3,500

Apple’s strategy to diversify its supply chain by expanding operations in India is driven by cost-efficiency and concerns over China’s geopolitical risks. India offers a more stable trade relationship and lower tariffs compared to China, making it an attractive alternative for Apple: the company have claimed that tariffs could add $900 million to its costs this quarter alone.

“I said to Tim” Trump added, “we’ve treated you really good, we’ve put up with all the plants that you’ve built in China for years, now you got to build [for] us. We’re not interested in you building in India, India can take care of themselves... we want you to build here.”

Despite Trump’s pressure, shifting iPhone production entirely back to the U.S. poses significant challenges, including higher labour costs, lack of a skilled workforce, and the absence of a supply chain that lives up to that in Asia. Dan Ives, global head of technology research at Wedbush Securities, told CNN that the price of an iPhone could triple to $3,500 if they were to be made in the United States.

While Apple has announced plans to build AI servers in Texas and is exploring ways to move iPhone production to the U.S., these initiatives are expected to take years.

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In March, Indian suppliers shipped a record $2 billion worth of iPhones to the U.S., aiming to avoid tariff disruptions. The Indian government has offered to waive tariffs on U.S. goods to attract more investment from companies like Apple.

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