India bets on Apple prioritising profits over political pressure: Report

Currently, Apple does not manufacture smartphones in the US

The Central government is optimistic that profitability will drive the decisions of tech giants such as Apple in setting up their manufacturing units in India, rather than any political pressure, top sources told CNN-News18.

The remarks soon after US President Donald Trump renewed pressure on Apple with the threat of a 25 percent tariff if iPhones were not made in the US.

New Delhi is betting on the availability of talent and facilities along with business viability taking the precedence for the iPhone maker over anything else, the report said.

Why Apple can’t make iPhones in the US despite Trump’s 25% tariff threat

A top government official told the news channel that it remains confident that Apple will “weigh profits over any pressure” from the Trump administration.

Currently, Apple does not manufacture smartphones in the US. Most of its iPhones are made in China, while India now accounts for around 15% of Apple’s total production, roughly 40 million units annually.

In the fiscal year ending March 31, Apple assembled 60% more iPhones in India, with an estimated production value of $22 billion.

Trump on May 23 said iPhones sold in America should be made domestically or face a 25 percent tariff if manufactured in India or anywhere else.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!," Trump said in a post on Truth Social.