On Friday, Trump said on his social platform, Trump said, “I have long since informed Tim Cook about Apple that I expect their iPhone phones that will be sold in the United States, will be produced and built in the United States, not in India or anywhere else.
The US President also ruled a new trade war with the threat of saving 50% higher duties on imports from the European Union (EU).
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Two Indian officials who are familiar with business conversations in India, India, said Trump’s comments do not affect business negotiations. “Tweet does not change our bargaining hold,” the first official said on condition of anonymity. “However, if Apple changes its resources and production decisions on the basis of this pressure, it can affect electronics exports in India.”
The second official claimed that Apple Inc. He will continue to make his decisions on commercial considerations. “At the end of the day, telephone phone manufacturers will act as Apple according to what business makes sense,” the official said, showing the cost benefits of India, the depth of the supply chain and the growing domestic market.
Meanwhile, the Indian business delegation remains on the ongoing BTA discussion. The delegation is led by the Minister of Trade Trade PIYUSH GYAL, who is accompanied by the main negotiator of Rajesh Agarwal, who is another secretary of the Ministry of Commerce. According to the above -mentioned official, the Indian team is scheduled to return home on Sunday evening.
For BTA India, it reportedly offered the structure of zero tariffs for some American products and is likely to propose further changes, including the reduction of tariffs and mitigating the requirements for compliance with US companies planning to enter or already do business in India.
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“Tweet timing is questionable,” said a executive who refused to be identified. “When the Indian team is dealing with American counterparts and the Minister of Trade Trade Unions from the front to conclude an agreement – perhaps 8 July – for example, a statement of US leadership creates doubts.”
In addition, Apple, a key player in the motivation system (PLI) associated with production, significantly contributes to the growth of Indian electronics exports. In FY25, the export of Indian electronics to the US increased to $ 14.64 billion from $ 5.76 billion in FY23, according to data from the Ministry of the Ministry of Commerce. In FY18, exports to only $ 986.22 million were exported. Sure, the export of the iPhone SE has increased significantly since 2020.
Questions e -mail E -mail of Apple Inc. And the Ministry of Trade remained unanswered until the press.
Formerly 15th May Trump asked Trump CEO Apple not to produce in India. “Yesterday I had a little problem with Tim Cook,” Trump said about his conversation with Cook in Qatar, where he was on a state visit last week. “It builds all over India. I don’t want you to build in India. India can take care of yourself.”
On Thursday, Apple Foxconn’s supplier announced a new investment of $ 1.5 billion to expand the production of iPhone in India. Funds, directed through their Singapore Arm, are focused on Yuzhan Technology India-to manufacturer of the components of the iPhone SECONDS in Tamil Nadu-like, part of Foxconn’s wider effort to expand its Indian operations.
Second look
Unlike the fear that India would lose, however, the Global Trade Research Institute (Gtri), a business Think -tank in its report published last Friday, indicated that the departure from the iPhone assembly could actually benefit the country.
Currently, India earns less than $ 30 per iPhone, a large part of which is efficiently returned to Apple via production -related incentives, she said.
“In order to protect Apple, the new Delhi reduces import obligations to the key components of the smartphone-like is the display, chipset and batteries, undermining Indian companies trying to build a local supplier chain,” said Ajay Srivastava, co-founder Gtri.
As regards profitability, $ 1,000 is the result of a worldwide distributed value chain, with Apple capturing around $ 450 through design, software and brand values, according to GTRi report.
US components, such as Qualcomm and Broadcom, contribute another $ 80, while Tai -Wan earns $ 150 for chips. South Korea and Japan add $ 90 and $ 85 through OLED screens, memory and camera systems. Germany, Vietnam and Malaysia are approximately $ 45 through smaller parts.
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Yet, despite the dominant final assembly, China and India each receive only $ 30 per device – less than 3% of their retail price. This phase may have low extra value, but is rich in creating jobs.
Currently, about 300,000 workers in China and 60,000 in India are employed on the iPhone assembly lines. The Gtri report said that Trump wants to move this segment in the workplace to the USA-no because it is top, but because it offers extensive jobs.
However, the shift would come at the price. In India, the installation costs are around $ 230 per month. In the US, the same work would cost a minimum wage of $ 2,900 per month-13 times.
As a result, the cost of assembling each iPhone would rise from 30 to about $ 390, reducing Apple’s profit to a device from $ 450 to approximately $ 60, if it is not compensated by price adjustment, the report said.
(Tagstotranslate) Apple
