Apple's decision to move iPhone assembly from China to India is driven by the US-China trade war and a desire to diversify manufacturing away from China's geopolitical uncertainties. This move aims to fulfill US market demand by 2026 and aligns with the Trump administration's strategy to strengthen alliances with India and counter China's influence.
This shift highlights divisions within the US tech sector. Venture capitalists and tech companies like Tesla and Apple, dependent on physical manufacturing, had different relationships with the Trump administration compared to algorithm-based companies like Meta and Uber. These differences stem from a competition for business and contrasting views on the future of tech development.
Elon Musk's changing role exemplifies this division, his departure from the government reflecting the tension between Tesla's manufacturing needs and Trump's policies.
Trump's tariffs serve dual purposes: regaining strategic capabilities (domestic manufacturing) and expanding markets. Negotiations with India and other nations aim to limit technological reliance on China and establish a US-led technological sphere. This includes prioritizing AI development and securing US technological dominance.
Apple's move highlights the challenges of fulfilling Trump's promise to bring jobs back to the US. The administration prioritizes strategic, future-oriented sectors over general manufacturing. Europe's position is weakened, facing a technological division between US and Chinese dominance, exemplified by the limited benefits Europe gains from hosting data centers for US tech giants.