President Trump publicly criticized Apple’s decision to shift iPhone production to India, stating that while the company is welcome to build factories in India, any products manufactured overseas and sold in the U.S. would face a 25% tariff. He emphasized that Apple had previously agreed to maintain domestic production, and he expressed his displeasure over the company’s expansion in India. The Times of India
In response, Apple has reassured Indian officials that its investment and manufacturing plans in India remain intact. The company is moving forward with a $1.5 billion investment by its key contract manufacturer, Foxconn, to establish a display module plant in India. INDmoney+1Facebook+1The Indian Express
Analysts suggest that while the potential tariffs could increase Apple’s costs, the company is committed to diversifying its manufacturing base and ensuring long-term supply chain resilience. Establishing equivalent production facilities in the U.S. would be financially unfeasible for now, with retail prices potentially tripling. The Times of India+4Time+4Barron’s+4Barron’s+1Financial Times+1
In summary, despite political tensions and tariff threats, Apple’s strategy to expand its manufacturing operations in India aligns with its broader goals of supply chain diversification and cost management.
President Donald Trump has recently intensified pressure on Apple to shift its iPhone manufacturing back to the United States, threatening a 25% tariff on devices made outside the U.S. This move directly targets Apple’s expanding production in India, which has become a significant part of its strategy to diversify supply chains away from China.
Trump’s Ultimatum to Apple
In a post on his Truth Social platform, President Trump stated:The Times+3CBS News+3@EconomicTimes+3
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.” ABC News+5The Times of India+5Los Angeles Times+5
Trump emphasized that “American jobs come first,” signaling a broader push to reshore manufacturing and reduce reliance on foreign production. He also mentioned a previous conversation with Tim Cook, where he expressed his disapproval of Apple’s plans to build more facilities in India.@EconomicTimes+2@EconomicTimes+2@EconomicTimes+2TECHi+1@EconomicTimes+1
Apple’s Response and Commitment to India
Despite the tariff threats, Apple has reassured the Indian government of its continued investment in the country. Foxconn, Apple’s key supplier, is investing $1.5 billion to expand its operations in India, aiming to produce up to 30 million iPhones in 2025. This expansion is part of Apple’s strategy to manufacture a significant portion of its iPhones in India, with projections to reach 60–65% of global production by the end of 2025. The Times of India
Economic and Logistical Challenges of U.S. Production
Analysts argue that shifting iPhone production to the U.S. is economically unfeasible. Wedbush Securities estimates that manufacturing iPhones domestically could increase costs to over $3,500 per unit, compared to the current average price of around $1,000. The complexity of iPhone assembly, which involves over 1,000 components sourced globally, further complicates the logistics of moving production to the U.S. CBS NewsThe Times of India+1CBS News+1The Guardian
Market Impact
Following Trump’s announcement, Apple’s stock experienced a decline of approximately 2.6% in early trading. The broader market also reacted negatively, with the S&P 500 and Nasdaq Composite indexes dropping by 1% and 1.1%, respectively. CBS News
Outlook
As of now, Apple has not publicly responded to Trump’s latest tariff threats. The company continues to focus on expanding its manufacturing capabilities in India, while also maintaining its commitment to U.S. investments, including a $500 billion pledge announced earlier this year. The ongoing trade tensions highlight the complexities tech companies face in balancing global supply chains with domestic political pressures.
Samsung has significantly expanded its manufacturing footprint in India, underscoring the country’s growing importance in its global operations.
Strategic Shift: From China to Noida
In June 2021, Samsung completed the construction of a state-of-the-art display manufacturing unit in Noida, Uttar Pradesh, relocating operations from China. This move was driven by India’s investor-friendly policies and the state’s conducive industrial environment. The facility produces advanced display panels for smartphones, tablets, and other devices, catering to both domestic and international markets. mint
Noida Facility: A Global Manufacturing Hub
Samsung’s Noida factory has emerged as one of its largest global manufacturing centers. During a visit in July 2024, CEO Jong-Hee Han highlighted that the facility manufactures smartphones, tablets, and refrigerators not only for the Indian market but also for global distribution. This underscores India’s strategic role in Samsung’s global supply chain. TechCrunch+5Business Standard+5Business Standard+5
Diversification and Innovation
Samsung’s Noida plant has diversified its production capabilities. In 2024, the company began assembling its latest generation foldable smartphones at this facility for the first time, marking a significant milestone in India’s manufacturing capabilities. mint
Commitment to India’s Digital Future
Samsung’s “Powering Digital India” initiative reflects its commitment to the country’s digital transformation. The company plans to launch a youth-centric citizenship program involving engineering students and academia across India, aiming to foster a stronger innovation ecosystem. Samsung+4Samsung Newsroom+4Samsung Newsroom+4Samsung+1Samsung Newsroom+1
Market Leadership
In the third quarter of 2024, Samsung led the Indian smartphone market by value with a 23% share, driven by strong demand for its premium Galaxy S series and foldable devices. The company’s focus on integrating AI features into its devices has further strengthened its position in the market. Business Standard+1Business Standard+1
R&D and Talent Development
Samsung’s R&D Institute in Bengaluru, established in 2004, serves as the company’s largest research center outside South Korea. The institute focuses on next-generation technologies such as 5G, AI, IoT, and data science, contributing to Samsung’s innovation strategy in India. Wikipedia
Local Partnerships and Community Engagement
Samsung has partnered with Dixon Technologies, an Indian electronics manufacturer, to locally produce LED televisions. This collaboration aligns with the Indian government’s “Make in India” initiative and supports the development of the local electronics manufacturing ecosystem. Wikipedia
Future Outlook
Samsung’s strategic investments in India reflect its confidence in the country’s growth potential. The company’s efforts in expanding manufacturing capabilities, fostering innovation, and engaging with local communities position it as a key player in India’s technological advancement.
President Donald Trump has intensified his trade policies by threatening a 25% tariff on smartphones, including those from Apple and Samsung, if they are manufactured outside the United States. This move aims to incentivize tech giants to relocate production to the U.S., but it has sparked significant market reactions and raised concerns about the feasibility of such a shift.the2states.com
📌 Key Developments
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Tariff Announcement: On May 23, 2025, President Trump announced that smartphones sold in the U.S. must be manufactured domestically to avoid a 25% tariff. He emphasized that companies would not face tariffs if they build their manufacturing plants in the U.S. The Times of India+1@EconomicTimes+1
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Impact on Apple: Apple, which has been expanding its production in India, faces a dilemma. The company assembled $22 billion worth of iPhones in India in the 12 months through March 2025, increasing production by nearly 60% over the previous year. Trump’s tariff threat could undermine these efforts and compel Apple to reconsider its global supply chain strategy.@EconomicTimes
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Samsung’s Exposure: Samsung, the second-largest smartphone vendor in the U.S., produces a significant portion of its devices in Vietnam. The proposed tariff could disrupt its supply chain and increase costs for American consumers. the2states.com
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Market Reactions: Following the announcement, Apple’s stock experienced a decline of approximately 2.6%, erasing about $70 billion in market value. The broader market also reacted negatively, with the S&P 500 and Nasdaq Composite indexes dropping by 1% and 1.1%, respectively. the2states.com
Market Impact
The tariff threat has introduced volatility into the stock market, particularly affecting tech companies with significant overseas production. Investors are concerned about the potential for increased costs and supply chain disruptions, which could impact profitability and consumer prices.
Analysis
Analysts argue that shifting iPhone production to the U.S. is economically unfeasible. Wedbush Securities estimates that manufacturing iPhones domestically could increase costs to over $3,500 per unit, compared to the current average price of around $1,000. The complexity of iPhone assembly, which involves over 1,000 components sourced globally, further complicates the logistics of moving production to the U.S.
Outlook
As of now, Apple has not publicly responded to Trump’s latest tariff threats. The company continues to focus on expanding its manufacturing capabilities in India, while also maintaining its commitment to U.S. investments, including a $500 billion pledge announced earlier this year. The ongoing trade tensions highlight the complexities tech companies face in balancing global supply chains with domestic political pressures