Donald Trump ‘not interested’ in India for iPhone production but Apple won’t budge

Following US President Donald Trump's remarks on wanting Apple to stay out of India for its production business, the smartphone maker has reportedly assured New Delhi of having its India operations intact.

US President Donald Trump on Thursday said he has asked Apple CEO Tim Cook to end its iPhone manufacturing business in India.

Trump, who in his second term as President is pushing for local manufacturing, said Apple will be "upping their production in the United States."

“I had a little problem with Tim Cook yesterday,” Donald Trump said of his conversation with Apple's CEO, in Doha.

“I said to him, Tim, you're my friend. I treated you very well. You're coming in with $500 billion (investment). But now I hear you're building all over India. I don't want you building in India if you want to take care of India.”

As of now, Apple does not produce any smartphone in the US. China is the biggest manufacturer of iPhones, while facilities in India produce around 40 million units per year (about 15 per cent of Apple's annual output).

Apple assures New Delhi

Soon after Trump's comments in Doha, Qatar, Indian government officials spoke to Apple executives, who assured that Apple's investment plans for India are intact and the company proposes to make the country a major manufacturing base for its products, as per a report by PTI.

While Apple did not respond to an e-mail sent for comments, sources cited by the news agency said Indian officials spoke to executives of the Cupertino-based firm on Trump's statements.

"Apple has said that its investment plans in India are intact and it proposes to continue to have India as a major manufacturing base for its products," the source was quoted as saying by PTI.

Cheaper skilled labour and availability of precision engineered product supply chains have driven Apple to China and India for manufacturing iPhones. American labour and manufacturing in comparison is expensive.

Trump suggested that Apple could make its products in India for the Indian market. But Made in India iPhones being sold in the US has to stop. "You can build in India if you want, to take care of India."

Cook had previously stated that Apple will source the majority of iPhones sold in the US from India in the June quarter while China will produce the vast majority of the devices for other markets amid uncertainty over tariffs.

India-made iPhones are assembled in Taiwanese contract manufacturer Foxconn's factory in Tamil Nadu. Tata Electronics, which runs Pegatron Corp's operations in India, is the other key manufacturer. Tata and Foxconn are building new plants and adding production capacity to raise iPhone production.

Apple assembled 60 per cent more iPhones, worth an estimated $22 billion, in India in the year ended March 31.

Foxconn has also started manufacturing Apple Airpods in Telangana for exports.