Apple Inc. remains steadfast in its commitment to expanding manufacturing and retail operations in India, despite U.S. President Donald Trump’s directive urging the company to halt production in the country and relocate operations back to the United States. Senior government officials have indicated that Apple’s long-term investment strategy in India is unlikely to be swayed by political pressure.
President Trump, during a state visit to Qatar, publicly criticized Apple CEO Tim Cook for increasing iPhone production in India, expressing a preference for domestic manufacturing. This stance comes even as the Indian government has offered tariff exemptions to encourage U.S. companies to invest in local production.
Analysts argue that relocating iPhone manufacturing to the U.S. is economically unviable. Wedbush Securities estimates that producing iPhones domestically could raise the retail price to approximately $3,500, compared to the current starting prices of $799 and $999 for the iPhone 16 and iPhone 16 Pro models, respectively. The logistical complexities and higher labor costs in the U.S. further complicate such a move.
India has become a critical hub for Apple’s manufacturing and market expansion. The company currently produces about $15-16 billion worth of iPhones annually in India, a figure that could potentially double to over $30 billion if U.S.-China trade tensions escalate. This shift could also create approximately 200,000 jobs in India and increase the country’s share in iPhone production to over 26%.
Apple’s retail presence in India is also growing. The company has opened flagship stores in Mumbai and Delhi and plans to establish additional outlets in cities like Pune, Noida, and Bengaluru. These expansions are part of Apple’s strategy to tap into India’s burgeoning middle class and its increasing demand for premium smartphones.
Despite the political friction, Apple’s stock has shown resilience. Shares have risen nearly 7% this week to about $211, although they remain down 16% for the year. Analysts maintain a bullish outlook, with Wedbush setting a price target of $270, above the analyst consensus of $228.
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