Despite the recent criticism from U.S. President Donald Trump, India remains committed to its growing partnership with Apple Inc. AAPL.
What Happened: The Tim Cook-led company has reassured the Indian government of its commitment to continue using India as a major manufacturing base. This assurance comes despite Trump’s recent remarks, with government sources emphasizing that there is “no change” in Apple’s investment plans in India, as per a CNBC-TV18 report.
Rajoo Goel, Secretary General of the Electronic Industries Association of India (ELCINA), responded to Trump’s criticism by underplaying its potential impact. He suggested that while it may slightly slow things down, it is unlikely to significantly affect India, given its minor share in Apple’s global market.
Goel referred to Trump’s remarks as “just a statement,” asserting that India’s electronics manufacturing sector is on “a very strong footing.” The Secretary General also anticipates that President Trump would change his stance on this matter.
Apple did not immediately respond to Benzinga’s request for comment.
Another Indian government official told India Today that companies like Apple make decisions based on global competitiveness rather than political rhetoric. “Apple would be more concerned about where they would find manufacturing competitiveness,” stated the official.
Why It Matters: Trump’s recent criticism of Apple’s manufacturing expansion in India comes after he revealed that he had a “little problem” with Apple CEO Tim Cook about the tech giant’s manufacturing expansion in India. This followed a conversation between Trump and Cook, where Trump stated that Cook intends to boost Apple’s investment in U.S. operations.
However, CNBC’s Jim Cramer warned that Apple could face challenges in India due to Trump’s trade policies. He stated that Trump is making it tough for Apple in India, potentially hurting the tech giant’s operations. Meanwhile, reports suggest that Apple is considering raising prices for its upcoming iPhones but would avoid revealing that the potential hike is related to U.S. tariffs on Chinese-made parts, where most of its assembly takes place.
Despite these criticisms, India’s electronics industry remains optimistic about its partnership with Apple, suggesting that Trump’s comments are unlikely to have a significant impact on their ongoing operations. That being said, Apple’s high-end models like the Pro and Pro Max will continue to be made mainly in China, as India’s infrastructure and technical capabilities are not yet sufficient for large-scale production at that level, as per experts.
Apple holds a momentum rating of 61.99% and a quality rating of 75.73%, according to Benzinga’s Proprietary Edge Rankings.
Apple stock has declined 13.29% during the year-to-date period.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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