The High Cost of Manufacturing iPhones in the US

US President Donald Trump's ambition to have Apple manufacture iPhones in America could lead to a significant price hike, with experts predicting the cost could triple to $3,000 per unit. This stark increase is attributed to higher labor expenses in the US compared to current manufacturing hubs like India and China.

A Strategic Shift in Apple's Manufacturing

Apple's recent moves to diversify its supply chain by shifting some manufacturing operations from China to India highlight the company's strategy to mitigate risks and reduce dependency on a single country. However, a complete relocation to the US or other Western nations poses challenges, including soaring production costs and the need for Apple to possibly accept lower profit margins to stay competitive.

Market Reactions and Expert Opinions

Prashant Girbane, Director General of MCCIA, questions the feasibility of such a move, emphasizing the potential reluctance of American consumers to pay premium prices for US-made iPhones. Meanwhile, NK Goyal of TEMA reassures that Apple's significant investments in India, including plans for additional manufacturing facilities, indicate a strong commitment to the region despite political pressures.

The Impact on India's Economy

With iPhone production in India reaching Rs 1.75 lakh crores in FY 2025, the Apple ecosystem plays a crucial role in the country's job market and economic growth. Experts like Jaideep Ghosh warn of adverse effects on India's economy should Apple reconsider its manufacturing strategy in the region.