Manufacturing iPhones in US could raise price to $3,000 from $1000, says industry experts

NEW DELHI: Industry experts have stated that if the USA starts manufacturing iPhones locally, as compared to India, it will cost $3,000, which is almost three times the current cost of $1,000 per iPhone. The reactions came after US President Donald Trump on Thursday said that he had spoken with the Apple CEO Tim Cook and asked him to limit Apple’s expansion in India.

Responding to the US President’s remarks, Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), said, “A lot better thought would prevail both in the Apple company and the US administration. They would realise the following facts. First, if they decide to manufacture in the USA as compared to China, India, or Vietnam, a $1,000 iPhone would cost $3,000. Are American consumers willing to pay $3,000 for that iPhone?”

He pointed out that currently, 80 per cent of Apple’s manufacturing takes place in China, creating around 5 million jobs there. When Apple CEO Tim Cook announced plans to manufacture in India, it meant shifting some manufacturing from China to India to diversify the supply chain.

“The manufacturing and jobs are not moving away from the USA to India, they are moving from China to India so that they would have a diversified supply chain, and American companies and consumers are protected right from the hegemony of one country that is not most friendly with them in terms of trade”, Girbane added. He said that while there is a lot of heat around this comment now, things will return to normal over time.

N K Goyal, chairman of the Telecom Equipment Manufacturers Association (TEMA), said, “By now, the world and India know that we have to wait for some time before we react to the statements made by the US President. As far as Apple is concerned, they have turned out more than $22 billion worth of iPhones from India in the last one year. Apple has three manufacturing facilities in India and plans for two more”.

He added that Apple had already partly moved its manufacturing from China to India. “It will be the commercial judgment of Apple whether to start manufacturing. They partly moved to India from China. If Apple moves out of India, it will be in big losses because the tariff restrictions are coming up globally and are subject to change very often. We firmly believe, as the Telecom Equipment Manufacturing Association, Apple will not go out of India,” Goyal said.

Jaideep Ghosh, former partner at KPMG, said that in FY 2025, which ended in March, iPhones worth Rs 1.75 lakh crores were manufactured in India, compared to Rs 1.2 lakh crores last year. “Apple ecosystem is quite important for India,” he said.

He also warned that if Apple decides to move out of India in the long-term, it will have a clear impact on Indian markets, especially employment. “It’s not easy to begin manufacturing iPhones in the US,” he added.

If Apple moves manufacturing from India to the US or another Western country, it will face higher labor costs, causing production expenses to surge. To remain competitive, Apple may need to reduce its profit margins, making the shift financially challenging despite the strategic appeal of relocating closer to Western markets. (ANI)