Neil Shah, vp of analysis at market analysis and evaluation agency Counterpoint Analysis, mentioned that relocating Apple’s manufacturing ecosystem to USA in close to to mid time period isn’t solely impractical but in addition infeasible as Apple’s provide chain is totally Asia-heavy round China, India and Vietnam.
“It isn’t nearly Foxconn opening a manufacturing facility within the USA but in addition the provision chain has to relocate nearer to the USA, which is past query. Second, even when Apple’s associate begins assembling within the USA, it is going to be a minimum of 10-20% costlier. So it might ultimately be as costly because the 255 tariff,” he mentioned.
Trump has once more pushed for the manufacturing of iPhones within the US and never in India or anyplace else on the market within the nation.
“I’ve way back knowledgeable Tim Prepare dinner of Apple that I count on their iPhone’s that might be bought in the US of America might be manufactured and inbuilt the US, not India, or anyplace else. If that isn’t the case, a Tariff of a minimum of 25% should be paid by Apple to the US,” Trump posted on Fact Social.
Earlier, Trump had particularly expressed reservation on enlargement of iPhone manufacturing in India.
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An evaluation by International Commerce Analysis Initiative (GTRI) estimates that Apple, via its software program, design, and model, claims the lion’s share of round $450 in every iPhone bought for $1,000. US part makers resembling Qualcomm and Broadcom add one other $80, Taiwan earns $150 for chip manufacturing, South Korea provides $90 for OLED screens and reminiscence chips, and Japan contributes $85, primarily through digicam techniques.
Different international locations like Germany, Vietnam, and Malaysia account for a modest $45 via smaller components whereas India will get solely $30, of which a big half is paid again via manufacturing linked incentive schemes.
“In India, meeting staff make roughly $230 monthly. In distinction, US minimal wage legal guidelines in states like California imply month-to-month labour prices may rise to $2,900 — a 13-fold improve. The price of assembling every iPhone would bounce from $30 to about $390. Apple’s revenue per system would drop from $450 to round $60, except offset by value hikes,” GTRI Founder Ajay Srivastava mentioned.
He mentioned that if Apple’s meeting strikes out, India might be pressured to cease propping up shallow meeting traces and as an alternative spend money on deeper manufacturing — chips, shows, batteries, and past.
“The price to Apple’s margins is actual — however so is the achieve in home employment, financial rebalancing, and provide chain resilience. Even India, as soon as the mud settles, could profit by being pushed towards deeper, extra worthwhile manufacturing,” Srivastava mentioned.
Shah mentioned if not China, then India stays the one potential manufacturing vacation spot for Apple because the ecosystem is mushrooming aided by decrease value English talking expert labour, world class software program expertise, beneficial authorities insurance policies resembling PLI (manufacturing linked incentive) and an enormous home consumption market.
“USA’s request to Apple may be a solution to achieve leverage in opposition to India in negotiations as they perceive India wants marquee firms resembling Apple to catalyse and construct a home provider ecosystem on this sturdy push for Make in India from semiconductors to completed electronics merchandise,” he mentioned.
Prepare dinner had beforehand said that Apple will supply majority of iPhones bought within the US from India within the June quarter, whereas China will produce the overwhelming majority of the gadgets for different markets amid uncertainty over tariffs.
India-made iPhones are assembled in Taiwanese contract producer Foxconn’s manufacturing facility in Tamil Nadu. Tata Electronics, which runs Pegatron Corp’s operations in India, is the opposite key producer. Tata and Foxconn are constructing new crops and including manufacturing capability to lift iPhone manufacturing.
Apple assembled 60% extra iPhones, price an estimated $22 billion, in India within the yr ended March 2025.
Foxconn has additionally began manufacturing Apple Airpods in Telangana for exports.
Based on an evaluation by S&P International, iPhone gross sales within the US had been 75.9 million items in 2024, with exports in March from India at 3.1 million items, suggesting a must double shipments both via new capability or redirecting shipments certain for the home market.
“Apple finds itself as soon as once more within the crosshairs of a belligerent ‘America First’ coverage stance — navigating the tightrope between inflationary pressures and absorbing prices. Whereas the tariff see-saw is prone to proceed, planting extra seeds for US manufacturing, India’s function as a vital cog in Apple’s world provide chain will solely develop stronger,” Cyber Media Research, Business Analysis Group, Vice President Prabhu Ram mentioned.
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