Tim Cook, the CEO of Apple, was informed by President Donald Trump that he is dissatisfied with the company’s decision to relocate additional iPhone production to India. His desire is for Apple (AAPL) to manufacture iPhones in the United States. On Thursday, Apple’s stock experienced a decline.
Donald Trump informed reporters on Thursday that he requested that Cook cease the construction of facilities in India for the production of devices for the U.S. market.
“I encountered a minor issue with Tim Cook yesterday,” Trump stated regarding his interaction with the Apple CEO. “My friend, I treated you very well,” I stated to him. You are expected to arrive in India with $500 billion; however, I have since learned that you are currently engaged in construction projects throughout the country. I do not wish for you to construct in India.
Trump was alluding to Apple’s February announcement of a $500 billion investment in the United States.
Trump informed Cook, “We are not interested in your construction in India.” India is capable of self-sufficiency. We would like you to construct a structure in this location.
Trump announced that Apple will increase its production in the United States as a consequence of their conversation. He did not furnish additional information. Apple did not respond to a request for comment.
CNBC reported that Trump made the remarks about the U.S. tech giant while discussing Washington’s broader trade relations with India.
Apple has expedited its production shift from China in response to the imposition of substantial tariffs on U.S. imports of Chinese products by President Trump. One of Trump’s objectives with his tariff policy is to encourage companies to relocate manufacturing operations to the United States.
By the end of the year, Apple intends to manufacture the majority of its iPhones that are intended for the United States in India. Additionally, it has relocated the production of AirPods, Apple Watch, Mac, and iPad products to Vietnam.
Tarun Pathak, research director at tech analytics firm Counterpoint, stated to Bloomberg, “This is a well-known Trump strategy: He intends to encourage Apple to establish a supply chain in the United States and increase localization, but this will not occur overnight.” “The cost of manufacturing in the United States will be significantly higher than that of assembling iPhones in India.”
Today, the stock market experienced a 0.4% decline in Apple stock, which ultimately closed at 211.45.
