During his recent foreign trip in Qatar's capital Doha, US President Donald Trump had demanded Apple CEO Tim Cook to stop production in India and threatened to impose a 25 percent tariff on the company if it did not do so.
After this Apple has recently invested heavily to increase its iPhone production. This has made US President Donald Trump furious with Apple company. Not only this, he has threatened to impose a 25 percent tariff on Apple and other companies which are increasing their investment in India.
Foxconn increased investment
Even after the threat of US President Donald Trump, Apple CEO Tim Cook is adamant. His company is continuously increasing investment in India.
iPhone manufacturing company Foxconn (Foxconn, officially known as Hon Hai Technology Group, is the world's largest contract manufacturer of electronics. They are a Taiwanese multinational company that specializes in manufacturing electronic devices for other companies, like Applehas) invested 1.48 billion dollars i.e. about Rs 12,800 crore in the last 5 days.
Also, Taiwan's iPhone manufacturing company Hon Hai Precision Industry has also invested 150 crores in India. Hon Hai Precision has made preparations to reduce its production in China and shift it to India.
Why company wants to continue production in India?
NITI Aayog CEO BVR Subramaniam has revealed that if Trump imposes a 25 percent tariff on iPhones made in India, then iPhones made in India can still be cheaper than iPhones made in America. He has told that it is cheaper for Apple to produce iPhones in India, in such a situation Apple is not going to turn to America.
Along with this, BVR Subramaniam has also informed that most of Apple's production takes place in Asia. In such a situation, if Apple shifts it to America, the price of iPhone will increase a lot, due to which Apple company is avoiding moving to America.
Prakash Kumar Pandey