Apple Shifts $22B iPhone Production to India, Angers Trump

Apple’s rapid pivot toward India is gaining momentum, with the tech giant assembling a record $22 billion worth of iPhones in India over the past year — a 60% jump from the previous year, according to Bloomberg. The move is part of a broader strategy to reduce dependence on China amid rising geopolitical and trade tensions.

At the center of this shift is Hon Hai Precision Industry Co., also known as Foxconn, Apple’s primary manufacturing partner. The Taiwan-based electronics giant has announced a $1.5 billion investment in its India unit through its Singaporean arm, aimed at scaling up production in southern India where most India-made iPhones are currently assembled.

The expansion hasn’t gone unnoticed in Washington. U.S. President Donald Trump, seeking re-election, publicly expressed displeasure last week, revealing that he had personally asked Apple CEO Tim Cook to “stop building plants in India.” Trump’s remarks reflect growing U.S. concerns over the offshoring of high-value manufacturing jobs, especially as Apple continues to assemble most of its iPhones in China and maintains minimal smartphone production in the U.S.

To mitigate political pressure, Apple has pledged a $500 billion investment in the U.S. economy over the next four years and promised to create more domestic jobs. Nevertheless, its manufacturing footprint remains firmly rooted overseas, with India emerging as a critical node in Apple’s global supply chain.

Hon Hai’s India expansion is not a lone effort. It’s being complemented by Tata Group’s electronics division, which recently acquired Wistron’s local business and now manages Pegatron Corp.’s India operations. Together, they represent a growing ecosystem of Apple suppliers moving production closer to the end-user markets, and further away from China.

While Hon Hai is also investing in U.S. operations to hedge against future tariffs, the strategic realignment clearly positions India as a major manufacturing hub for Apple — one that is likely to grow even more prominent in the years ahead.

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