Where will the next iPhone be made, Apple and US President Donald Trump have recently had important talks about manufacturing. Trump urged Apple CEO Tim Cook that iPhone manufacturing should be done in the US instead of India. Trump clearly says that the products that are sold in the US should be made in the US. Tim Cook may not have made any direct public statement on this, but there is a lot of discussion on this issue.
Apple’s manufacturing plan in India remains intact
Apple’s manufacturing in India is progressing rapidly. The company believes that India’s manufacturing ecosystem is very favorable for the smartphone industry. Low cost, better supply chain and government schemes like PLI incentives make it even more beneficial. Apple has already clarified that most of the iPhones sold in the US from the June quarter will be made in India. This means that the company is looking at India as a strong production hub and President Trump’s remarks have not affected its plans.
Preparations for production in America too
However, Apple has also taken steps towards manufacturing in America. According to Trump, Tim Cook has agreed to increase production in America. Apple has already announced a plan to invest $ 500 billion in the US in February. Under this, the company will set up factories in the US and some iPhone models will be produced from there.
How difficult is manufacturing in America
Manufacturing in America is not just a political decision but also a major economic challenge. Wages and production costs there are many times higher than in India. Apart from this, the infrastructure related to production is also not as strong as in China or India. In such a situation, it will not be easy for Apple to shift completely to America.
India will remain an important part of the global supply chain
Not only is the cost low in India, but support from the government like tax exemption and PLI scheme also attract Apple. Therefore, even if the company starts production in America, it will be mainly for the domestic market. At the same time, Apple’s focus in India will be on meeting global demand. The company is planning to set up even bigger manufacturing plants in India in the coming time.
The result is clear
Tim Cook can adopt a balanced strategy in which there is manufacturing in both India and America. This will also partially fulfill Trump’s wish and Apple’s international strategy will also remain intact. However, it is good news for India that Apple’s trust and investment will remain here for the time being.