Trump furious at the head of Apple
Donald Trump criticized Apple decisions regarding subsequent investments in India. The American president emphasized, that he personally handed over AppleTim Cook that he does not want the company to continue its expansion in this Asian country at the expense of production in the United States.
“I had a little problem with Tim Cook yesterday,” said Trump, Quoted by “The Guardian”. – I told him: “Tim, you are my friend. First you come to me with 500 billion, and now you build in all of India. I do not want you to build in India,” he said.
$ 500 billion, which Donald Trump mentioned, This is an amount that Apple intends to invest in the US in the coming years. The company's plans assume, among others Construction of a server factory in Houstonwhich is planned in 2026 and the expansion of data centers in Arizona, California, Iowa Nevada, North Carolina, Oregon and Washington. Apple also promises 20,000 new jobs in the USA.
“I don't want them to build in India”
In recent years, Apple consistently diversifies its supply chain, gradually transferring some of the iPhone production from China to India. Last year, India was already responsible for 13-14 percent of global supplies of iPhones, and this year this participation may double.
The production of iPhones in India is responsible, among others Foxconna plants in Chennai, Pegatron in Tamil Nadu and Wistron in Karnatak (currently belonging to Tata Group). Apple uses these partners to become independent of Chinese factories, which is a response to global commercial tensions and the risk associated with geopolitics.
Donald Trump – who in the past publicly criticized Apple for production outside the US – returned to this topic as an incumbent president, emphasizing the need to move jobs back to the United States. In an interview with Cook, he was to point out that although he understands global business conditions, he would like to see more production on American land.
– I told Tim: “We treated you really well, for years we have tolerated all the plants you built in China, now you have to build for us” – Trump continued on Thursday. – We are not interested in building in India, India can take care of yourself … We want you to build here ” – emphasized the American president.
IPhone production in the USA? It's not that simple
For now, Apple did not refer to the words of Donald Trump. While the company already produces some of its devices in the US (including iMac computers), its flagship product – iPhone It has always been produced in Asia – mainly in Chinese Foxconn factories. For a reason. As Tim Cook himself argued in 2017, China's advantage results not only from labor costs, but above all from the concentration of highly qualified employees in advanced technologies and tools.
China has an advantage in terms of highly qualified workforce and advanced technologies that are difficult to find in other places
Cook explained. The production of devices such as the iPhone requires a huge technological facilities and specialized engineers and fitters – resources that are currently available almost exclusively in Asia. The transfer of production to the USA would not only be associated with great investments, But it would also mean a significant increase in labor costs and extending the production cycle.
What's more, many components would have to be imported from the Middle Kingdom anyway. This is due to the fact that China is currently controlling a significant part of the global market of rare lands that are necessary for the production of semiconductors.
It is worth recalling In the past, Apple has announced great investments in the USA. In 2018, during the first term of Trump, the company announced that in 5 years it would pump $ 350 billion in the American economy. In 2021, Tim Cook made a promise to invest $ 430 billion – also over 5 years.