Apple’s Strategic Moves in India Amidst Political Pressure
Apple’s Indian affiliates are playing a pivotal role in the miniaturization of capital equipment for the electronics sector, with a particular emphasis on smartphones.
Defying the incessant rhetoric from former U.S. President Donald Trump, Apple is vigorously expanding iPhone manufacturing capabilities in India while collaborating with numerous local enterprises.
Despite Trump’s repeated demands for Apple to curtail Indian production, the tech giant has continued to assert its dominance. Apple is amplifying its iPhone assembly operations within Indian borders and simultaneously enhancing the manufacturing of specialized machinery integral to iPhone production. In essence, while Trump vocalizes his discontent, Apple is steadfastly focused on fortification.
Trump has been persistently pressuring Apple CEO Tim Cook to revert production to the United States, brandishing the threat of a 25% tariff on iPhones assembled outside American borders. This past May, Trump proclaimed that iPhones must be “manufactured and built in the United States, not India, or anywhere else”, or face severe consequences.
Rather than capitulating, Apple has confidently opted for India, illustrating that its corporate strategies are governed by rationality rather than presidential outbursts.
In retaliation for India’s acquisition of Russian oil, Trump imposed 50% tariffs on various Indian imports. Notably, iPhones have secured an exemption, shielding American consumers from immediate price surges.
Nevertheless, this exemption can be revoked unilaterally, as such threats appear more a reflection of Trump’s whims than a well-structured economic policy.
Undeterred by external turbulence, Apple has fortified its presence, with India now providing over 70% of iPhones sold in the U.S., a substantial increase from just 31% a year prior. Astonishingly, during the first half of 2025, India exported a record 22.88 million units, marking a phenomenal 52% year-over-year increase. While Trump vocalizes concerns about tariffs, Apple is quietly securing its future.
The company’s ambitions do not conclude here. Apple is also localizing the production of vital capital equipment and tools employed in iPhone manufacturing. Approximately 35 Indian firms are now engaged in this burgeoning ecosystem, with nearly 17 joining forces with Apple in the last two years.
Industry stalwarts such as Titan Engineering and Automation Ltd (TEAL), Jyoti CNC Automation, Bharat Forge, and Wipro are contributing efforts alongside smaller enterprises keen to supplant Chinese suppliers.
These machines are integral post the Surface Mount Technology (SMT) phase, where electronic components are meticulously affixed onto printed circuit boards. Apple retains exclusive intellectual property and expertise concerning this machinery. According to an insider: “Various types of machines are essential, and that’s where Apple is localizing manufacturing in India.”
Another emphasized: “With Apple’s IP and acumen, these firms are instrumental in constructing the tools necessary for iPhone production.” This initiative, they noted, “mitigates logistical risks, reduces costs, and fortifies resilience.”
The timing of this campaign is astute. China has intensified restrictions on machinery exports to India, halting shipments to assemblers such as Foxconn, Tata Electronics, and Jabil. Beijing has even recalled specialists from India and urged Chinese companies to withdraw.
Nonetheless, instead of being alarmed, Apple is diligently establishing a parallel ecosystem in India, signaling its intent to rival China’s manufacturing sophistication within two to three years.
Apple has expanded its footprint in India significantly. The company operates five factories, including two newly established facilities, dedicated to the production of both iPhones and AirPods. With 35–40 suppliers currently providing essential components such as batteries, chargers, and cables, Apple has achieved approximately 20% domestic value addition, with aspirations from the Indian government to elevate that figure to 30–40% through initiatives like ECMS 2.0.
The corporation is also encouraging Indian enterprises to enter into joint ventures with South Korean, Taiwanese, Japanese, and certain Chinese companies to manufacture key components, including displays and camera modules. For example, Foxconn’s Yuzhan Technology is poised to invest $1.5 billion in a facility located in Tamil Nadu.
Despite Trump’s unwavering threats of tariffs and Apple’s pledge of $100 billion in U.S. investments over the next four years, the reality remains that India’s competitive costs and expanding ecosystem render a return to American soil improbable.
Currently, China accommodates 157 of Apple’s 470 global suppliers, yet India’s ascendance is irrefutable: from 14% of iPhone production in 2024 to an anticipated 25% by the close of this year.
With iPhone 17 production already underway in India, the message remains unequivocal: Apple is more confident in India’s prospects than in Trump’s volatility. The President may continue issuing threats, yet each utterance merely highlights his disconnect, while Apple forges ahead, innovating and placing Trump in an increasingly embarrassing position on the global stage.
Source link: Satyaagrah.com.
