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The iPhone price can increase from $ 1,000 to $ 3,000.
If Apple shifts its manufacturing base from India or China to the US, then the price of an iPhone can increase from $ 1,000 to $ 3,000. If it is changed in the rupee, the price of the iPhone will increase from about 85 thousand rupees to about 2.50 lakh rupees.
A day earlier, on 16 May, US President Donald Trump had told in Doha, the capital of Qatar, that he has told the CEO Tim Cook of Apple that there is no need to install factories in India. They do not want Apple products to be made there.
Trump on Thursday informed about the conversation with Apple CEO at an event with business leaders in Doha, the capital of Qatar.
Learn how the iPhone cost will increase in four points?
Labor Cost: According to a report by Financial Express, Apple Assembly in India gives average $ 290 (about Rs 25,000) per month to workers. U.S. Under the minimum wage law, it will increase to $ 2900 (about 2.5 lakh rupees). That is, this cost will increase by 13 times.
Infra deficiency: There is a shortage of specialized supply chains and skilled labor forces for iPhone production in the US. Apart from this, the cost will increase by creating new manufacturing facilities. Its burden can fall on consumers. India also gives incentives through the PLI scheme in manufacturing.
Component Sourcing Cost: Many iPhone components are sourced from Asia (eg, China). Due to passing, the logistic cost of sending to India is low. On the other hand, if it is supplied in America, then the logistic cost will increase.
Assemblying Cost: The cost of assembling a device will increase from $ 30 (about 2500) to $ 390 (about Rs 33,000) per device. The profit per device will be reduced from $ 450 (Rs 38,000) to $ 60 (about 5,000 rupees). This will directly affect American buyers.
Expert said- Apple will suffer financial loss due to going out of India
- NK Goel, chairman of the Telecom Equipment Manufacturing Association (Tema) said- “Last year Apple has exported more than $ 22 billion from India. Three manufacturing units are already operational and two more plans to make, with which the company is clearly committed to its Indian operations.” He warned that going out of India could cause financial loss to Apple. This will be a wrong decision commercially. “
- Former KPMG partner Jaideep Ghosh said, “India produced an iPhone of Rs 1.75 lakh crore in FY 2025, which is more than Rs 1.2 lakh crore in the previous year. This increase underlines India’s importance in Apple’s global strategy.” Ghosh said, “It is not an easy task to install iPhone construction in the US. Only labor cost will increase production expenses dramatically.”
- Prashant Girbane, Director General of 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, not to withdraw investment from America. He said, “Currently, Apple’s 80% production is in China. Shifting a part of it 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
In the US, manufacturers in India and China get only $ 30 (about 2500) per device on iPhones sold for about $ 1,000 (about 85 thousand rupees). This is less than 3% of the cost of the device, but it generates employment. About 3 lakh employees in China and 60,000 employees in India work in these units. This is why Trump wants Apple to shift his manufacturing to America.
60% iPhone production increased from March-24 to March-25
From March 2024 to March 2025, Apple created $ 22 billion (about ₹ 1.88 lakh crore) value in India. It has increased by 60% compared to last year.
During this, Apple exported iPhone of $ 17.4 billion (about ₹ 1.49 lakh crore) from India. At the same time, one in every 5 iPhone worldwide is now being made in India. The manufacturing of the iPhone in India is done in the factories of Tamil Nadu and Karnataka.
Foxconn is the most produced in this. Foxconn is Apple’s largest manufacturing partner. Apart from this, Tata Electronics and Pagtron also manufacturing.
