Why India Will Remain the 'Apple of Tim Cook's Eye' for iPhone Manufacturing

Why India Will Remain the 'Apple of Tim Cook's Eye' for iPhone Manufacturing

As Apple CEO Tim Cook ramps up iPhone production in India, former U.S. President Donald Trump has voiced strong opposition. Trump insists that iPhones destined for the U.S. should be manufactured domestically, rejecting Apple's plan to make them in India for the American market.

The U.S. President’s “Little Problem” with Tim Cook

Trump criticized Cook’s decision to shift a significant portion of iPhone production for the U.S. market from China to India. “We’re not interested in you building in India... we want you to build here,” Trump stated, emphasizing his push for local manufacturing.

Tim Cook, however, appears committed to India as a core production hub—especially for the upcoming June quarter—citing geopolitical uncertainties and the need to diversify supply chains.

Why Moving Production to the U.S. Is Challenging

While Trump’s demand reflects protectionist policy goals, relocating Apple’s manufacturing from Asia to the U.S. would be extremely complex and costly. Key challenges include:

• Lack of Skilled Labor: The U.S. lacks the concentration of skilled engineers and technicians needed for complex electronics manufacturing.

• High Costs: Labor costs in India and China are significantly lower. Apple assembly workers in India earn around $290/month, whereas in the U.S., minimum wages would push that above $1,000/month.

• Infrastructure and Supply Chain Limitations: Apple’s iPhones require over 1,000 components sourced globally. These supply chains are deeply entrenched in Asia.

Tim Cook once said, “In the U.S., you could have a meeting of tooling engineers, and I’m not sure we could fill the room. In China, you could fill multiple football fields.”

Why India Is Central to Apple’s Strategy

India has rapidly emerged as a key production base for Apple, both in volume and value. In March, the tech giant airlifted $2 billion worth of iPhones from India, leveraging its local partners Foxconn and Tata Electronics.

• Tata's Expansion: Tata Electronics began producing older iPhone models at its new plant in Hosur, Tamil Nadu.

• Foxconn’s New Facility: A new factory is coming up in Bengaluru, projected to become Foxconn’s second-largest plant after China, with plans to employ 40,000 workers.

• AirPods in Telangana: Foxconn has also started manufacturing Apple AirPods in India for export.

Union Minister Ashwini Vaishnaw reported that Apple exported iPhones worth ₹1.5 lakh crore in FY25, showcasing India’s growing role in the global supply chain.

Who Stands to Lose?

Experts argue that Apple, not India, stands to lose more if production shifts out of the country.

According to a Global Trade Research Initiative (GTRI) report, for every $1,000 iPhone sold in the U.S., India retains only $30 from assembly, while the remainder is distributed among global suppliers:

• Taiwan: $150 (chips)

• South Korea: $90 (displays, memory)

• Japan: $85 (cameras)

• U.S. firms: $80 (Qualcomm, Broadcom)

• Others (Germany, Malaysia, Vietnam): $45

If Apple moves its assembly out of India, the country may be compelled to deepen its manufacturing capabilities in areas like chipsets, batteries, and displays, moving beyond basic assembly.

Domestic Production Costs Could Triple

Some experts estimate that producing iPhones entirely in the U.S. could raise costs to $3,000 per unit, up from the current average of $1,000. The steep jump would be driven mainly by high labor costs and infrastructure challenges.

India Should Follow Suit on Local Manufacturing

Capitalmind AMC CEO Deepak Shenoy noted that India should learn from Trump’s approach. “This is exactly what India needs to be telling its own manufacturers – build here, not in China,” he said.

The Bigger Picture: Global Trade and Supply Chains

Despite occasional tariff exemptions for complete smartphones, many of the components are still subject to international trade rules and levies. Apple’s strategy to diversify from China is less about labor costs and more about managing geopolitical risk and supply chain resilience.

A temporary 90-day pause in U.S.-China tariffs was recently announced, but long-term trade uncertainties persist.

A Lesson from Steve Jobs

When former U.S. President Barack Obama asked Steve Jobs in 2011, “What would it take to make iPhones in the U.S.?” Jobs replied bluntly: “Those jobs aren’t coming back.”

More than a decade later, industry insiders agree: the U.S. still lacks the ecosystem required for high-scale, high-efficiency electronics production.

Final Thoughts

India’s blend of cost-efficiency, scale, infrastructure readiness, and skilled labor makes it a strategic hub for Apple’s global manufacturing. Regardless of political pressure, Tim Cook’s focus on India reflects a long-term supply chain pivot that is here to stay.

Apple’s continued investment in India isn’t just about cost—it’s about staying agile in a complex global environment. And for now, India remains the ‘Apple’ of Tim Cook’s eye.