Concerns Over Potential Shift in iPhone Manufacturing

New Delhi: Industry insiders suggest that if the U.S. were to produce an iPhone domestically, the price could skyrocket to $3,000, nearly triple the current retail price of about $1,000. This commentary follows remarks made by President Donald Trump regarding Apple’s growth plans in India.

Trump, in a conversation with Apple CEO Tim Cook, urged the company to limit its expansion efforts in India. In light of this, Prashant Gilben, Director of the Mahurata Chamber of Commerce, emphasized that a more effective strategy would benefit both Apple and the U.S. administration. He questioned if consumers would actually pay $3,000 for an iPhone manufactured in the U.S.

Currently, around 80% of Apple’s manufacturing takes place in China, which has contributed to roughly 5 million jobs there. With Cook’s announcement of plans to shift some production to India, this move is seen as an effort to diversify Apple’s supply chain.

Gilben pointed out that manufacturing jobs are not simply transitioning from the U.S. to India; rather, they are moving from China to India. This shift aims to protect American consumers and businesses from reliance on a single, trade-unfriendly country.

He acknowledged that while there is significant tension surrounding the issue, it will eventually settle down.

NK Goyal, chairman of the Telecom Equipment Manufacturers Association, remarked that both the global market and India may need to take a moment before fully reacting to Trump’s statements. In the prior year alone, Apple amassed over $22 billion in revenue from India and has established three manufacturers there.

He indicated that Apple’s decision to continue its manufacturing shift from China to India is a business consideration. Goyal outlined the challenges of shifting production back to the U.S., which would likely result in increased labor costs and, consequently, higher production expenses. This could lead Apple to face difficulties in maintaining competitiveness while trying to enhance its margins.

Former KPMG partner Jaideep Ghosh stated that during the fiscal year ending in March 2025, iPhones valued at Rs 1.75 lakh were manufactured in India, a rise from Rs 1.20 lakh in the previous year. He emphasized the significance of Apple’s ecosystem for India.

Ghosh cautioned that if Apple were to withdraw from India in the long term, it would adversely impact the Indian market and job opportunities. He remarked that establishing iPhone production in the U.S. would not be an easy task.

As Apple considers moving manufacturing from India back to the U.S. or to another Western nation, it faces the prospect of increasing labor and production costs. This, in turn, could complicate its efforts to remain competitive in the market.