Apple resists Trump’s warning, says no pause on India's iPhone expansion

Apple has told the Indian government that it has no intention of slowing down its expansion in India. The company is committing an estimated $2.5 billion to boost iPhone production capacity from over 40 million units annually to around 60 million, as reported by TOI.

Much of the additional output is meant for export, particularly to the United States. Highly placed sources said Apple, which has already started assembling the soon-to-be-launched iPhone 17 in India, has “categorically assured the govt that it does not intend to slow down expansion plans and investments” in the country.

A government official told The Times of India, “Company executives have told us that there will be no change in plans when it comes to India investments. The expansion plans will continue as previously envisaged.”

Production partners step up

Apple’s growth in India has been supported by its main vendors. Taiwanese supplier Foxconn and the Tata Group, which acquired Wistron’s factories and a controlling stake in Pegatron’s operations, are both in the middle of large-scale expansion projects.

According to the TOI report, officials say Apple values India’s manufacturing environment, pointing to the quality of production, factory setups and infrastructure as “among the best in the world”.

Trump’s opposition

The expansion has gone ahead despite US President Donald Trump’s pushback against iPhone exports from India. While smartphones and computers are not currently affected by new US tariffs, Trump has made his opposition clear.

During a visit to Doha in May, he said, “I had a little problem with Tim Cook... I said to him, my friend, I am treating you very good... but now I hear you are building all over India. I don’t want you building in India.”

Cook’s response and India’s role

Apple CEO Tim Cook has taken a different stance. On a call with analysts after the company’s quarterly results on 31 July, he said that the “majority” of iPhones sold in the US in the past quarter were made in India. China, once the dominant hub for iPhone production, now largely services non-US markets.

India is also becoming a strong market in its own right. Apple exported iPhones worth $17 billion from India last year while also gaining a double-digit share of domestic sales. In the same earnings call, Cook added that revenues in India are witnessing record growth, driven by iPhone demand.

Retail push: Bengaluru and Pune stores

Parallel to its manufacturing growth, Apple is expanding retail operations. On 2 September, it opened a store in Bengaluru’s Hebbal district at Phoenix Mall of Asia. Two days later, on 4 September at 1 pm, it will open another outlet in Pune’s Koregaon Park.

Both stores feature artwork inspired by the peacock feather, a theme already seen in Apple’s Mumbai and Delhi locations. The Pune store will stock the full product range and host Today at Apple sessions on photography, music, art and coding. Customers will also have access to specialists, creative trainers, technical support staff and business-focused teams, in line with the experience at Apple’s BKC and Saket outlets.

Six stores by 2025

Apple’s first two Indian stores opened in Mumbai and Delhi in April 2023 and together generated an estimated Rs 800 crore in their first year. The addition of Bengaluru and Pune takes the tally to four stores, and Apple plans to open two more in Mumbai and Noida by the end of this year.

That will bring the total to six Indian stores by 2025. While Cook and senior vice president Deirdre O’Brien personally attended the earlier Mumbai and Delhi launches, Cook is not expected at the Pune event due to the upcoming iPhone launch. Other Apple executives are expected to be present.

Ahead of the Pune opening, customers can download exclusive wallpapers and curated Apple Music playlists inspired by the city’s culture from Apple’s official website.

(With inputs from TOI)