 "Representative image. AP")
A day after US President Donald Trump said he has “a little problem” with Apple sourcing from India to meet American demands , the iPhone-maker said it will review plans to scale up substantially in the country.
A source told the Times of India that while “regular expansion and China+1 production diversification plans will continue as envisaged”, Apple will review its strategy to manufacture phones exclusively from India instead of China.
“We await clarity on the geopolitical situation and the tariffs. Things have been moving at a fast pace, and there have been many sudden changes to the US govt’s stance on tariffs, including with regards to China where duty has been reduced drastically over the past few days. We will take a breather before embarking on any mega production expansion plans in India with regards to exclusive supplies to the US,” the source said.
‘No change in plan’
Meanwhile, CNBC-TV18 has quoted another source as saying that Apple has no change in plan despite Trump’s objection, adding that the company will continue its commitment to making India its key production hub.
“There is no change in Apple’s investment plans in India," the source said, adding that Apple has “assured the Indian government” of its engagement with the country.
What has Trump said?
Trump’s comments on Apple came after the US and China announced an agreement to suspend tit-for-tat tariffs for 90 days, de-escalating a trade war that has spooked financial markets and raised fears of a global economic downturn.
He said, “I had a little problem with Tim Cook. I said, Tim, we treated you really good. We put up with all the plants that you built in China for years now.”
Before the Beijing and Washington agreement, Apple CEO Tim Cook said Apple was “unable to precisely estimate the impact of tariffs”. When presenting the tech company’s first-quarter profits in early May, Cook said he expected “a majority of iPhones sold in the US will have India as their country of origin”.
With inputs from agencies