Manufacturing iPhones in the United States instead of India could triple their price to around USD 3,000, nearly three times the current cost of USD 1,000, industry experts have cautioned, following recent remarks by US President Donald Trump.
Trump, speaking on Thursday, said he had discussed the matter with Apple CEO Tim Cook, urging the company to reconsider its expansion plans in India.
Responding to Trump’s comments, 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 USD 1,000 iPhone would cost USD 3,000. Are American consumers willing to pay USD 3,000 for that iPhone?”
Girbane noted that around 80 per cent of Apple’s manufacturing currently takes place in China, providing around 5 million jobs. He highlighted that Apple’s recent plans to manufacture in India were aimed at diversifying its supply chain rather than shifting jobs from the US.
“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.
NK Goyal, Chairman of the Telecom Equipment Manufacturers Association (TEMA), echoed similar sentiments, noting that Apple had already moved a portion of its manufacturing from China to India.
Also read: Trump to Apple: Don’t make iPhones in India, drop tariffs first
“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 dollars worth of iPhones from India in the last one year. Apple has three manufacturing facilities in India and plans for two more,” Goyal said.
He added that moving manufacturing entirely to the US would pose significant financial challenges for Apple, given rising labour costs and shifting global tariff policies.
Jaideep Ghosh, a former partner at KPMG, pointed out that iPhones worth Rs 1.75 lakh crore were manufactured in India in the 2025 financial year, compared to Rs 1.2 lakh crore the previous year.
“Apple ecosystem is quite important for India,” Ghosh said, adding that a long-term exit from India would have a substantial impact on local markets and employment.
Experts also noted that if Apple were to relocate its manufacturing from India to the US or another Western country, it would face higher labour costs, potentially forcing the company to reduce its profit margins to stay competitive, despite the strategic appeal of relocating closer to Western markets.
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