Trump’s ‘Make in US’ Wish for Apple iPhones Could Mean $3,000 Price Tag
Trump’s ‘Make in US’ Wish for iPhones Could Mean $3,000 Price Tag
US President Donald Trump’s dream of seeing iPhones manufactured in America might come with a hefty price tag: up to three times the current cost. Market analysts warn that shifting production from India to the US could dramatically increase manufacturing expenses, pushing the price of an iPhone from $1,000 to a staggering $3,000.
This prediction follows Trump’s recent announcement that he urged Apple CEO Tim Cook to halt expansion plans in India. While China currently handles 80% of Apple’s manufacturing, providing jobs for millions, Cook’s recent announcement about increased production in India signified a strategic shift away from China towards a more diverse supply chain.
Moving Manufacturing: A Costly Decision
Moving Apple’s manufacturing operations from India to the US, or other Western nations, would significantly increase labor costs, ultimately leading to higher production expenses. To maintain competitiveness, Apple might have to accept smaller profit margins, despite the benefits of operating closer to Western consumers.
Prashant Girbane, Director General of MCCIA, expressed his concerns to ANI, stating, “A lot better thought would prevail both in the Apple company and the US administration.” He questioned whether American consumers would be willing to pay $3,000 for an iPhone and highlighted the strategic reasons behind Apple’s move to India: diversifying the supply chain and reducing reliance on a single country.
Industry Experts Weigh In
NK Goyal, Chairman of TEMA, pointed out that the world has learned to wait and see before reacting to the US President’s statements. He emphasized that Apple has already started shifting some production from China to India, generating over $22 billion in iPhone sales from India in the last year alone.
Goyal believes that Apple will remain in India due to the growing tariff restrictions globally. He stated, “It will be the commercial judgment of Apple whether to start manufacturing. They partly moved to India from China. If Apple moves out of India, it will be in big losses because the tariff restrictions are coming up globally and are subject to change very often. We firmly believe, as the Telecom Equipment Manufacturing Association, Apple will not go out of India.”
Jaideep Ghosh, a former KPMG partner, noted the significant growth of iPhone production in India, reaching Rs 1.75 lakh crores in FY 2025. He underscored the importance of the Apple ecosystem for India and warned about the potential negative consequences if Apple were to withdraw from the country, affecting both the market and job sector.
