Hey, Tim Cook, the iPhone is ringing and it’s for you.
The Apple (AAPL) CEO heard from President Donald Trump about the computer giant and iPhone maker’s plans to expand production in India in a bid to avoid Trump’s staggering tariff attack on China, where the Cupertino, Calif.-based tech company makes about 80% of its products.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💰💵
Apple, which currently has three iPhone assembly plants in India, did not immediately respond to a request for comment.
Cook discussed the issue with analysts during Apple’s May 1 conference call that “for the June quarter, we do expect the majority of iPhones sold in the U.S. will have India as their country of origin and Vietnam to be the country of origin for almost all iPad, Mac, Apple Watch and AirPods products sold in the U.S.”
“China would continue to be the country of origin for the vast majority of total product sales outside the U.S.,” he said.
The U.S. and China agreed on May 12 to significantly reduce tariffs on each other for an initial 90-day period. The level of U.S. tariffs still in place on Chinese goods to about 30%, while China was reducing its levies on American imports to 10%.
The announcement followed after a weekend of marathon trade negotiations in Geneva, Switzerland.
Apple CEO Tim Cook (center) with Iowa Gov. Kim Reynolds and President Donald Trump
Bloomberg/Getty Images
Trump has little problem with Apple CEO
Nevertheless, Trump was not happy with Cook.
“I had a little problem with Tim Cook yesterday,” Trump said of his conversation with the Apple CEO in Qatar, where he was on a state visit, according to CNBC. “I said to him, ‘my friend, I treated you very good. You’re coming here with $500 billion, but now I hear you’re building all over India.’ I don’t want you building in India.”
More Tech Stocks:
Amazon makes move that the White House hates, then walks it backAnalyst reboots Apple stock price target ahead of earningsControversial EV tax credits will be bad news for Tesla
As a result of their discussion, Trump said Apple will be “upping their production in the United States.”
Apple announced in February that it planned to open a new factory for artificial intelligence servers in Texas as part of a $500 billion investment in the U.S.
Trump said India is “one of the highest tariff nations in the world,” adding the country has offered a deal to the U.S. where “they are willing to literally charge us no tariff.”
Many tech companies are expected to expand their presence in India this year, driven by a rapidly growing tech sector and significant job opportunities, particularly in areas like AI, cloud computing, and cybersecurity.
India’s IT sector is projected to experience significant growth in 2025, with job opportunities potentially increasing by 15% to 20%, The Economic Times reported, citing the Instahyre Tech Salary Index 2025.
Foxconn, the world’s largest contract electronics manufacturer and key Apple supplier, received approval from the Indian government to build a semiconductor plant in a joint venture with HCL Group, drawing an investment of 37.06 billion rupees, or $433 million, CNBC reported.
The plant, which will be built in India’s northern state of Uttar Pradesh, will be operational by 2027, Ashwini Vaishnaw, India’s information minister, said in a cabinet briefing.
Analyst cites tariff Rubik’s Cube
The facility will manufacture Foxconn’s display driver chips, which are used in mobile phones, laptops, automobiles, PCs, and other consumer electronics.
Wedbush analyst Dan Ives and his team believe that India and China will be the iPhone hubs for iPhone 17… and not the U.S.
Related: Shocking China news sends Apple stock surging today
“We believe Apple has put itself in a very hedged supply chain strategy heading into iPhone 17 production this Fall,” said Ives, who maintained his outperform rating and $270 price target.
“All of our work in the supply chain throughout Asia over the past few weeks gives us a high level of confidence that Cupertino’s aggressive push towards India production has been a very smart strategic move given the uncertain tariff environment facing Apple in China,” he added.
Ives, who maintained his outperform rating and $270 price target, said that Cook has navigated this unprecedented supply chain situation in a “hall of fame moment” that will be part of his legacy.
Now with the China tariff pause, he added, “Apple will have a number of strategic options on the table looking forward around iPhone production in India and/or China for this Fall.”
“We fully expect more pressure from the Trump Administration on Apple to build iPhone production in the U.S… but as we have discussed this would result in an iPhone price point that is a non-starter for Cupertino and translate into iPhone prices of about $3,500 if it was made in the US and this would take many years,” Ives said.
The analyst said that Apple remains one of the firm’s top tech picks for 2025 despite “this current tariff Rubik’s Cube which clouds the near-term outlook but does not change our very bullish multi-year view of Apple’s growth profile.”
“We also believe that China trade talks and a softening of the tariff situation is a major positive for Apple,” Ives said. “We believe the stage is set for growth to return in the key China region and Apple to unveil an AI strategy roadmap that will lead to a renaissance of growth.”
