Why Apple Can't Easily Solve Donald Trump’s "Little Problem"

Why Apple Can't Easily Solve Donald Trump’s "Little Problem"

Apple CEO Tim Cook appears to be facing what former U.S. President Donald Trump has called a “little problem.” At the heart of the issue: Trump’s firm stance that Apple should manufacture iPhones in the U.S., not India. The comment comes as Apple accelerates its shift of iPhone production to India, a move that aligns with the company’s long-term strategy to diversify beyond China and streamline global manufacturing operations.

During a state visit to Qatar, Trump told reporters, “I had a little problem with Tim Cook yesterday. He is building all over India. I don't want you building in India.” He claimed Cook had agreed to expand U.S. production, adding, “India can take care of themselves—they are doing very well.”

Whether Tim Cook actually committed to such a change remains unclear. Just recently, during Apple’s Q2 earnings call, Cook had stated that iPhones sold in the U.S. would be made in India, reinforcing India’s rising importance in Apple’s supply chain.

Long-Running Push for Domestic Manufacturing

This isn’t the first time Apple has faced political pressure to manufacture domestically. During Trump’s earlier term, his administration repeatedly urged Apple to expand U.S. operations. Former press secretary Karoline Leavitt stated that Trump believed the U.S. had the labor force and resources to support domestic iPhone production.

On his Truth Social platform, Trump again pushed for reshoring: “This is a great time to move your company into the U.S., like Apple, and so many others are doing in record numbers.”

Why Moving iPhone Production Isn’t Simple

Despite political pressure and even Apple’s investments—such as a $500 million commitment to U.S.-based manufacturing—shifting large-scale iPhone assembly to the U.S. faces several formidable hurdles:

1. Skill and Infrastructure Gaps

Manufacturing iPhones is a highly complex process requiring thousands of skilled engineers, precise tooling, and supply chain proximity. In 2017, Tim Cook noted that in the U.S., “you could have a meeting of tooling engineers and barely fill a room. In China, you could fill multiple football fields.”

2. Cost Considerations

Labor costs in Asia remain far lower than in the U.S. In India, Apple pays an average of $290/month to assembly workers. In contrast, U.S. minimum wage laws would push that figure to over $1,000/month. Some industry analysts estimate that if iPhones were built entirely in the U.S., they could cost upwards of $3,000, three times their current price.

3. Established Ecosystems in Asia

Apple’s production relies on a deeply entrenched Asia-based supply chain—from semiconductors in Taiwan and South Korea, to cameras and displays in Japan and Germany. Disrupting this network would compromise the company’s efficiency and raise operational risks.

India’s Strategic Role in Apple’s Future

Apple’s pivot to India has gained momentum, especially as trade tensions between the U.S. and China persist. India’s manufacturing infrastructure has steadily matured, supported by government incentives and strategic partnerships with companies like Foxconn and Tata Electronics.

Recently, Apple increased iPhone production in India, with exports worth ₹1.5 lakh crore in FY2025, and plans for further expansion in Tamil Nadu and Karnataka.

What’s Next for Apple?

While Trump’s renewed call for domestic iPhone production may resonate with U.S. manufacturing advocates, Apple is unlikely to make a full-scale shift to America anytime soon. The company’s global footprint, profit margins, and strategic supply chain decisions are shaped by long-term realities—not short-term political pressure.

As Apple balances political expectations with practical manufacturing challenges, it’s clear that solving this “little problem” isn’t just about geography—it’s about economics, infrastructure, and global strategy.