Apple shares closed just 0.4% lower at $211.45 on Thursday, May 15, suggesting investors are not pricing in a major disruption. Despite Trump’s sharp remarks, markets largely shrugged off the potential political risk, focusing instead on Apple’s strategy to diversify its supply chain away from China.
Speaking in Qatar on Thursday during a Middle East tour, the US president said he had “a little problem with Tim Cook yesterday” after the Apple CEO confirmed that Indian factories would soon supply the “majority” of iPhones sold in the US “We are not interested in you building in India,” Trump said. “India can take care of themselves. They’re doing very well. We want you to build here (U.S.).”
Apple aims to source from India all of the more than 60 million iPhones it sells annually in the U.S. by the end of next year, according to reports.
“We are treating you really well, we put up with all the plants you built in China for years,” Trump said, recalling his conversation with Cook. “We are not interested in you building in India.”
India move stays on track for now
Despite Trump’s pointed remarks, Apple’s India expansion appears to be moving full steam ahead. Company executives have reassured Indian officials that investment plans remain unchanged, according to senior government sources quoted by The Economic Times.
“We have spoken to all significant players, and all their plans are on track,” said one official. Apple suppliers including Foxconn and Tata Electronics are rapidly scaling up operations in Tamil Nadu and Karnataka, with India now accounting for about 15% of Apple’s global iPhone output. Exports from India to the U.S. reached over $7 billion in FY25, up from $4.7 billion the previous year, driven largely by iPhone shipments.
Foxconn has also begun manufacturing Apple AirPods in Telangana for export, while the company continues to seek more Indian suppliers to boost local sourcing.
Investors watching policy moves
Trading data in recent weeks reflects how investor sentiment has been shaped by shifting trade policy. According to Viram Shah, Founder and CEO of Vested Finance, tariff-related announcements in April caused trading volumes to spike and shift direction.
“Starting April 2, when the blanket 10% global tariffs were announced, trading volume surged sharply… buyers accounted for nearly 70% of the volume,” Shah said.
“But when the announcement came on April 13 excluding smartphones… sales volumes rose dramatically. This suggests profit-taking and a more cautious approach as investors digested the tariff relief.”
Can Apple afford to build in the U.S.?
The idea of relocating significant iPhone production back to the U.S. — a key Trump demand — appears economically unviable. Industry experts warn such a shift could triple costs.
“A $1,000 iPhone would cost $3,000 if made in the USA,” Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture told The Economic Times. “Are American consumers willing to pay that?”
U.S. Commerce Secretary Howard Lutnick echoed the manufacturing challenges last month, stating that Apple’s Tim Cook had told him the U.S. would need “robotic arms” to replicate the “scale and precision” of Chinese assembly lines.
“He’s going to build it here,” Lutnick told CNBC. “And Americans are going to be the technicians who drive those factories. They’re not going to be the ones screwing it in.”
Geopolitics in the background
Apple’s India strategy has been applauded by the Narendra Modi government as a flagship success of its “Make in India” push. Trump’s remarks come even as India and the U.S. negotiate a bilateral trade deal, with tariff discussions playing a central role.
“India’s one of the highest-tariff nations in the world,” Trump said in Qatar. “They’ve offered us a deal where basically they’re willing to literally charge us no tariff . . . they’re the highest and now they’re saying no tariff.”
Despite warm personal ties between Trump and Modi, U.S.-India trade relations remain complex. Still, Indian officials appear confident that political statements will not derail manufacturing momentum.
“Companies go to places where they can reduce costs and be more competitive,” a senior government official said. “India will continue to attract such companies.”
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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)