Apple Plants Billions in America, But India’s Orchard Still Blooms

Image Source: The Hindu Business Line

Apple’s latest announcement of a $100 billion investment in the United States has sparked global attention, especially in markets like India where the tech giant has been expanding its manufacturing footprint. However, analysts and industry leaders have clarified that this massive financial commitment will not disrupt Apple’s ongoing operations in India, at least in the short term.

The new investment, unveiled at a White House event attended by Apple CEO Tim Cook and President Donald Trump, is part of Apple’s broader strategy to deepen its manufacturing base in the US. This pledge brings Apple’s total domestic investment to $600 billion over the next four years, including plans for advanced chipmaking, rare earth recycling, and expanded partnerships with American suppliers.

Key highlights from the announcement and its implications for India:

1. Apple’s new investment is focused on building a high-end supplier ecosystem in the US, including collaborations with companies like Corning, Broadcom, Texas Instruments, and MP Materials. These efforts are part of the American Manufacturing Programme (AMP), aimed at reshoring critical components and boosting domestic production.

2. Despite the scale of the US investment, Apple’s suppliers in India are moving ahead with plans to mass-produce the next iPhone models. Production is expected to begin within weeks, as previously scheduled, with no changes announced in Apple’s India strategy.

3. Analysts like Faisal Kawoosa of Techarc and Pankaj Mohindroo of ICEA have stated that Apple’s India operations remain unaffected. There is no threat to existing facilities or employment, and the company’s commitment to India continues to hold strong.

4. India has become a key base for Apple’s final assembly operations, exporting nearly one-third of its iPhones to the US. The country’s role in Apple’s global supply chain has grown significantly due to geopolitical tensions between the US and China.

5. President Trump’s recent imposition of a 50 percent tariff on Indian imports, citing ties with Russia, raised concerns about potential disruptions. However, Apple’s India-made products are expected to be exempt from these tariffs, according to sources cited by Nikkei Asia.

6. Apple’s move is seen as a strategic response to political pressure. Trump has repeatedly criticized Apple for manufacturing outside the US and urged the company to bring production home. The $100 billion pledge is viewed as a balancing act—expanding US operations while maintaining global assembly lines.

7. The investment includes a $500 million deal with MP Materials to produce recycled rare earth magnets in Texas, which will be used in iPhones. Apple also plans to expand its partnership with Corning to produce smartphone glass in Kentucky, ensuring that every iPhone and Apple Watch sold globally will feature US-made cover glass.

8. While Apple’s US expansion focuses on high-tech components, India’s role remains centered on final assembly. However, India is actively working to deepen its supply base and attract more component manufacturers, which could be influenced by Apple’s shifting priorities.

9. Apple’s stock surged by nearly 6 percent following the announcement, reflecting investor confidence in the company’s ability to navigate trade tensions and maintain global operations.

10. Industry experts caution that while the current impact on India is minimal, future shifts in Apple’s manufacturing strategy could alter the balance. For now, India remains a vital part of Apple’s global production network.

Sources: The Hindu Business Line, Indian Express, India Today