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Valuetainment

"India Becoming China 2.0" - Will Apple’s MASSIVE India-iPhone Gamble Backfire?

21 Aug 2025

Transcription

Chapter 1: Why is Apple shifting iPhone production from China to India?

0.031 - 19.589 Patrick Bet-David

And now the story comes about with Apple, you know, moving their, expanding their production to India. That's 60 million iPhones per year away from China to India. What? That's a lot of phones. That's a lot of jobs. China's losing a big account of a three, four trillion dollar company that's going away from them.

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Chapter 2: What are the implications of Apple's plan to produce 60 million iPhones in India?

19.849 - 42.077 Patrick Bet-David

What if people all of a sudden realize that we no longer need to go to those guys? If Apple's leaving, who else is leaving? Who else is watching? And so when you got Taiwan, that's got 61%. of the semiconductor chips with TSMC, which it stands for Taiwan Semiconductor Chips, they know there's a monopoly there. Not a monopoly, but they have a lynch. They got control. You got to go through it.

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42.497 - 57.699 Patrick Bet-David

China's not happy about it. But Tom, I'm going to come to you with a story from Bloomberg. is Apple expands iPhone production in India with U.S. brands, U.S.-bound new models. And there was some issue with U.S. and India as well, but this is a complete separate issue.

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57.719 - 70.217 Patrick Bet-David

Apple is expanding iPhone production in India at five factories, including two recently opened plans to reduce reliance on China and U.S.-bound models, with operations scaling up to produce all four iPhone 17 models.

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71.362 - 92.973 Patrick Bet-David

Ahead of their September debut, this marks the first time all new variations, including pro-level versions, will ship from India from the outset for people with knowledge of the matter. The more move aligns with Apple's strategy to diversify its supply chain amid U.S.-China trade tensions, with India now accounting for 10% of global iPhone production per Reuters. Tom, what's the story here?

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93.454 - 96.238 Patrick Bet-David

So what's been going on is Apple...

96.218 - 127.487 Tom Ellsworth

has been preparing for the China situation for about five years. Apple has sensed very clearly discontent from the GOP side for years, and they have also been Remember, last thing you just said, 10 percent, 10 percent of iPhone production. So it's not everything moving 10 percent. So they went to India so that they could get cheap labor rates in a country that got them less heat.

128.008 - 149.297 Tom Ellsworth

And that's politically and, you know, logistically. Now, if something does happen in China, like what if China attacks Taiwan and we put the hammer down and say, OK, embargo, no ships to any ports coming from China right now, no exports. Right. We would do that. Like if they invaded China, if they invaded Taiwan and just went there, in addition, we'd be worried about chips.

149.557 - 168.165 Tom Ellsworth

But we'd put the hammer down and say, economic embargo right now. Nothing moves. And then Apple would be like, oh, crap, I can't get phones. So they had a political side of it and then a practical side. The practical side was it's never good to have all your manufacturing in one place. Something happens. Could be the environment. Could be a war. Could be all these things we're talking about.

168.565 - 193.464 Tom Ellsworth

And so they were already doing that. The punchline was... Tim Cook telling Trump, well, we've been planning to move stuff out of China for a while and we're moving stuff to India and and expecting Trump to be happy because it's hurting China. But Trump moved your next five moves straight down. Why don't you build them here? Bring him here. Why don't you bring him here to the USA?

Chapter 3: How does the U.S.-China trade tension influence Apple's manufacturing strategy?

200.014 - 212.355 Patrick Bet-David

He says, I'm not happy. His key words were, I'm not happy that you're moving him to India. What does that mean to me in states? And I think that's the reason why he raised it from $500 billion to $600 billion, that additional $100 billion.

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212.335 - 217.301 Tom Ellsworth

Apple thought that he'd be Apple thought that, OK, enemy of my enemy is my friend.

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217.441 - 217.662 Patrick Bet-David

Yeah.

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217.722 - 239.513 Tom Ellsworth

So Apple thought, hey, I'm moving some stuff out of China. It gives you it's going to help the bargaining chip and you get the response from him. No, that's, you know, one one side that may be OK. But you know what? Where is it here? You know, I'll be right back. You know, printers moving and everything the next day. Tim Cook, ah, this just in, $500 billion. I mean, $600 billion.

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239.593 - 252.439 Tom Ellsworth

I'll be building chips. I'll be building all the things here. And that just shows you, again, the power of negotiation. Because, by the way, moving to India does help Trump, but he's not going to give that to Apple. He's going to say, no, no, no, I want the next steps. I want it here.

252.519 - 257.652 Patrick Bet-David

Well, let me tell you this. Moving to India may help Trump. But don't forget this.

Chapter 4: What are the potential risks of Apple's reliance on Indian manufacturing?

258.094 - 282.341 Patrick Bet-David

Here's what you never forget, and people tend to consistently forget, my opinion. So how many years ago did U.S. not worry about China's power and they were worried about Japan, right? You go to the— 1980s, basically. 1980s with the auto industry. The ping-pong, the Xi Jinping, or, you know, the—well, not Xi Jinping. What was the guy's name? Ping-pong diplomacy? Ping-pong diplomacy.

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282.361 - 287.987 Patrick Bet-David

But what was the guy's name that did the whole thing? You brought this up in California the other day.

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288.007 - 290.069 Adam Sosnick

So when you think about— What was his name, Rob? What was your buddy's name?

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290.39 - 312.942 Patrick Bet-David

Zhang—Zhang— Anyways. Pat, you really got to practice your Mandarin. But let me go with this. The part to be thinking about here is nobody, Nixon didn't think China was going to end up being this powerful and this ambitious to want to beat America when he did the deal. That was in 1972, 71, when he brokered the... deal with China, the ping-pong diplomacy.

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313.082 - 316.41 Tom Ellsworth

Everything that Kissinger talked about was like low-cost manufacturing.

316.43 - 339.953 Patrick Bet-David

And Japan taught China how to have 5,000 banks with 35 loan officers each with 35 locations, you know, taking 5.25 loans, all the stuff that they had in place. That was at a time where China was not well respected. And then all of a sudden, they're number two, about to be number one. So you know what India's at right now? Number four. They're about to pass up and be number three.

340.674 - 361.245 Patrick Bet-David

India's about to be number three. And guess what happens if you keep strengthening India? India becomes China 2.0. Now, they will say India is not one that wants to do war and India gets along with all their enemies. They get along with China and US and Russia and everybody. They don't want to have a war with anybody. That's India's, what do you call it, identity. Except Pakistan.

361.405 - 383.67 Patrick Bet-David

Except until when you all of a sudden get a new leader in. that maybe is not Modi and realizes that, hey, maybe we can beat China and U.S., let's go for everything, and then India starts using the leverage. So the way to fix it long-term is to make sure you don't have 100% of your iPhone production being in China and India. Why don't you bring 30% of it in U.S.?

384.53 - 407.232 Patrick Bet-David

Why don't you bring 30% of it in U.S. and allow some people in America, guess what, what if we did this? What if Apple did this? How do you think this would work out? Just a thought. What if Apple decided to sell 25% of their iPhones in America numbered that says Made in America. Oh, wow. You think people would pay $500 more for it? I would do it.

Chapter 5: How does Trump's stance on American jobs affect Apple's decisions?

537.638 - 563.175 Patrick Bet-David

Let me tell you what would happen. There would be thousands and thousands of influencers that would buy the Made in America phone and post it all over social. You wouldn't need to spend a single penny of doing a commercial on it. You would gain a loyalist customer coming to Apple that 2,000 votes. It's still at $53.47. They're saying, yes, I would pay that additional $500.

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563.956 - 566.882 Patrick Bet-David

We're up to something here, guys. I would pay it because guess what?

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566.942 - 578.001 Tom Ellsworth

I'm saying we're supporting American jobs, American workers, Vinny. Would you rather do it that way by paying more for an iPhone or would you rather wait for the government to tax you and eventually give somebody a nickel?

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579.303 - 580.486 Adam Sosnick

What year did it? Nixon go to?

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580.507 - 583.235 Patrick Bet-David

71, 72. So we're talking, so.

583.275 - 589.495 Adam Sosnick

How close was that to Mao's great leap forward and the cultural revolution? That was right around that time, right?

589.61 - 590.451 Patrick Bet-David

Where are you going with this?

590.691 - 618.283 Adam Sosnick

No, I'm just wondering. I mean, it's interesting how China and America at this point are competitors. Some might call them enemies. We conveniently forget that 25 to 40 to 50 million people, million people just died in China. How'd they die? He killed them. I mean, there was famines. There was communism. We forget about all the deaths in communism. But, you know, we get cheap iPhones, so...

618.263 - 619.585 Adam Sosnick

Let's see what we can do with that.

Chapter 6: What role does political pressure play in Apple's production choices?

624.694 - 644.544 Patrick Bet-David

Today. It's actually the National Lemonade Day, okay? So when you think about the National Lemonade Day, we launched this campaign a few months ago, if you remember. Rob, if you can go to it, it was the Zested Forward Lemon Box, which ended up becoming a hit. And we got so many awesome stories and testimonies.

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644.924 - 660.842 Patrick Bet-David

The other day I was reading all the reviews at the bottom of what stories people were saying and the reaction they got from folks. It's absolutely awesome. I'm going to read this to you. Imagine someone's having a bad day. Things are not going the way they wanted. This box shows up. Valuetainment. They open it up, and there's a message there saying,

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660.822 - 677.338 Patrick Bet-David

Okay, an inspirational message there that they hear. And then outside of the inspirational message, there's a few items. A Zested Forward hat, Future Looks Pride hat, a few other items. And it's a way, what is that audio, Rob? Is that Adam? You? Okay.

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677.358 - 700.827 Patrick Bet-David

So I want to read some of these stories to you of people who use this and send it to others and what their experience was from the people that received it. So here's one. Hello. Yes, yes, yes. Amazingly zest. Help me surprise. Help me to surprise gentleman who has everything and more for his 98th birthday. That's awesome. He was looking and listening to Patrick. Never seen anything like that.

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700.907 - 722.858 Patrick Bet-David

Whispered. Great idea. Touched the heart. Me too. Thank you. My appreciation is going out to you, Lilia. Okay, so that's one right there. Next one. My sister-in-law is going through chemotherapy. She was very surprised and blessed by the gift. Thank you for thinking of such a lovely gesture. God bless you. Here's another one from Eric Stewart.

722.838 - 742.036 Patrick Bet-David

My customer is going through some hard times with business and family. The VT Lemon Box put a smile on his face with a heartfelt thank you. Great idea, guys. I can go on and on and on with these stories. Folks, if you know a friend or family that's going through challenging times, go to vtmerch.com, place the order, zest it forward to somebody, make someone's day.

742.056 - 756.827 Patrick Bet-David

Sometimes the best feeling in the world isn't receiving the gift. Sometimes the best feeling in the world isn't you getting the promotion, isn't you getting all of that. Sometimes it's just doing it for somebody else. So if you want to start your day, you know, for me, anytime I was having a bad day in sales the last 25 years, the first thing I would do

757.803 - 773.742 Patrick Bet-David

When I would go through a lot of rejections, I would call five of my clients or five of my guys, and I would tell them how amazing that I would find a way to make somebody else's day. Then my spirits would come up, then I would perform and go out there and make my calls and meet with my clients that I needed to. So if you want to be able to do that for somebody else, send this to someone.

774.082 - 790.359 Patrick Bet-David

Not only will you bless someone's day, but it's going to come back and do the same thing to you. So that's one. Number two, August 27th, I want to remind you guys of what's happening here on the campus. August 27th, we're giving private tours of the entire campus. Right now, we're building a soccer field here.

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