Apple Inc. is once again in the geopolitical spotlight after former U.S. President Donald Trump criticized the tech giant for expanding its iPhone production in India rather than shifting more manufacturing back to the United States. His remarks come at a time when Apple is strategically diversifying its supply chain to reduce dependence on China – and India has become a major part of that plan.
Despite Trump’s comments, Apple has shown no signs of reversing course on India. The company now plans to manufacture a significant portion of iPhones sold in the U.S. in India, especially in light of mounting tariffs and supply chain volatility.
📈 India’s Role in Apple’s Global Strategy
India has rapidly become one of Apple’s fastest-growing manufacturing hubs. In FY25, Apple exported nearly $17.4 billion worth of iPhones assembled in India, through partnerships with firms like Foxconn and Tata Group. This shift not only supports global supply chain diversification but also aligns with India’s push to become a high-tech manufacturing powerhouse.
While Apple is not currently planning to build MacBooks or iPads in India, its focus on expanding iPhone assembly remains central to its regional growth strategy.
📉 What Happens If Apple Pulls Back from India?
Trump’s push for Apple to return manufacturing to the U.S. could, if acted upon, have significant consequences for Indian consumers.
💰 1. iPhone Prices Would Likely Rise in India
If Apple stops or reduces production in India, iPhones would need to be imported again – triggering 20% or more in import duties. This would lead to a substantial increase in retail prices, potentially by ₹5,000–₹10,000 per device, depending on the model.
🧾 2. Loss of Government Incentives
India’s Production-Linked Incentive (PLI) scheme helps lower manufacturing costs for local assembly. A production pullback would mean Apple forfeits these benefits – another factor that would drive up pricing.
📦 3. Higher Logistics and Exchange Rate Costs
Longer supply chains from China or Vietnam, along with INR-USD currency fluctuations, would add to logistics and procurement costs, eventually passed on to Indian consumers.
🏷️ 4. Reduced Price Competitiveness in a Price-Sensitive Market
India is an extremely price-sensitive market. Local production helps Apple price older and mid-tier iPhones more competitively. Without that cushion, Apple risks losing ground to aggressive local competitors like Samsung, Xiaomi, and OnePlus.
🇮🇳 A High-Stakes Balance
Apple’s decision to continue investing in India, despite criticism from U.S. political leaders, reflects the high-stakes nature of its global supply chain strategy. It is not just about politics – it’s about logistics, economics, and access to emerging markets.
For Indian consumers, Apple’s continued production in India means more affordable pricing, quicker availability, and a stronger local presence. A rollback, on the other hand, could not only raise iPhone prices significantly but also hurt Apple’s long-term ambitions in one of the world’s most promising smartphone markets.
In the tug-of-war between global pressures and regional opportunity, Apple must weigh political rhetoric against practical reality. So far, India remains a central player in Apple’s future.
