₹85-Thousand’s Iphone Could Cost ₹2.5 Lakhs: Trump Had Said – Does Not Want Apple Products To Be Made In India, Increase Production In America

If Apple shifts its manufacturing base from India or China to the US, the price of an iPhone could rise from $1,000 to $3,000. If it is converted into rupees, the price of iPhone will increase from about 85 thousand rupees to about 2.50 lakh rupees.

A day earlier, on May 16, US President Donald Trump had told in Qatar’s capital Doha that he had told Apple CEO Tim Cook that there was no need to set up factories in India. They do not want Apple’s products to be made there.

Know in four points how the cost of iPhone will increase?

Labor Cost: According to a report by Financial Express, Apple in India gives an average of $290 (about Rs 25,000) per month to assembly workers. U.S. Under the minimum wage law, this will increase to $2900 (about Rs 2.5 lakh). That is, these costs will increase 13 times.

Lack of infra: There is a shortage of specialized supply chain and skilled labor force for iPhone production in America. Apart from this, cost will increase by creating new manufacturing facilities. The burden may fall on consumers. India also provides incentives in manufacturing through PLI scheme.

Component Sourcing Cost: Many iPhone components are sourced from Asia (e.g., China). Due to passing, the logistics cost of sending to India is low. At the same time, if it is supplied to America, logistics cost will increase.

Assembling Cost: The cost of assembling a device will increase from $30 (about 2500) to $390 (about Rs 33,000) per device. Profits per device will drop from $450 (Rs 38,000) to $60 (about Rs 5,000). This will have a direct impact on American buyers.

Experts said – Apple will suffer financial loss due to going out of India

Telecom Equipment Manufacturers Association (TEMA) Chairman NK Goyal said – “Last year, Apple has exported iPhones worth more than $22 billion from India”. Three manufacturing units are already operational and two more are planned, making the company clearly committed to its Indian operations He warned that going out of India could cause financial loss to Apple. It would be a commercially wrong decision.”

Jaideep Ghosh, former partner of KPMG, said, “It was only in FY2025 that India produced iPhones worth Rs 1.75 lakh crore, which is more than Rs 1.2 lakh crore last year”. This increase underlines the importance of India in Apple’s global strategy “Installing iPhone manufacturing in the US is not an easy task”, Ghosh said. Only labor costs will dramatically increase production spending”.

Prashant Girbane, Director General, Maharata Chamber of Commerce, Industries and Agriculture (MCCIA), said – Apple’s decision to increase manufacturing in India was a strategic effort to bring diversification in its supply chain away from China, and not to withdraw investment from America. “Currently, 80% of Apple’s production takes place in China”, he said. Shifting a part of this to India will strengthen the supply chain and reduce dependence on a geopolitical partner.

Apple employs 60 thousand people in India and 3 lakh people in China

On iPhones sold in the US for around $1,000 (about 85 thousand rupees), manufacturers in India and China get only $30 (about 2500) per device. These account for less than 3% of the cost of the device, but generate employment. About 3 lakh employees in China and 60,000 in India work in these units. This is why Trump wants Apple to shift its manufacturing to America.

iPhone production up 60% from March-24 to March-25

From March 2024 to March 2025, Apple made iPhones worth $22 billion (about ₹1.88 lakh crore) in India. It has increased by 60% compared to last year.

During this period, Apple exported iPhones worth $17.4 billion (about ₹1.49 lakh crore) from India. At the same time, one out of every 5 iPhones worldwide is now being made in India. In India, iPhone is manufactured in factories in Tamil Nadu and Karnataka.

Foxconn produces the most in this. Foxconn is Apple’s largest manufacturing partner. Apart from this, Tata Electronics and Pegatron also manufacture.

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