Trump Urges Apple to Shift iPhone Production to US, Sparking Cost Concerns

17 May, 2025
Trump Urges Apple to Shift iPhone Production to US, Sparking Cost Concerns

Winning Bizness Desk

Mumbai.Former U.S. President Donald Trump has publicly urged Apple CEO Tim Cook to relocate iPhone manufacturing from India to the United States. Speaking at a business summit in Doha, Trump expressed dissatisfaction with Apple's increasing investments in India, including a recent $433 million semiconductor plant by Foxconn.

Industry experts warn that moving iPhone production to the U.S. could significantly increase costs. Currently, an iPhone priced at $1,000 (approximately Rs85,000) could see its price triple to $3,000 (around Rs2.5 lakh) if manufactured in the U.S. This surge is attributed to higher labor costs, infrastructure expenses, and supply chain challenges.

Labor and Infrastructure Challenges

In India, assembly workers earn about $290 per month, whereas in the U.S., the minimum wage could raise this to $2,900 monthly. This 13-fold increase would elevate assembly costs per iPhone from $30 to $390, drastically reducing Apple's profit margins.

India's Growing Role in Apple's Supply Chain

Apple has been diversifying its manufacturing base, with India playing an increasingly significant role. In the financial year ending March 2025, Apple produced iPhones worth Rs1.89 lakh crore in India, marking a 60% increase from the previous year. Of this, Rs1.5 lakh crore worth of iPhones were exported, highlighting India's strategic importance in Apple's global operations.

Expert Opinions

Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), emphasized that shifting manufacturing to the U.S. would not only escalate costs but also pose logistical challenges. He noted that Apple's decision to expand in India was a strategic move to diversify its supply chain and reduce dependence on China.

Summary Points

  • Trump has urged Apple to move iPhone production from India to the U.S.
  • Experts predict iPhone prices could triple if manufactured in the U.S.
  • Higher labor and infrastructure costs in the U.S. are primary concerns.
  • Apple's production in India surged by 60% in FY 2025.
  • India exported iPhones worth Rs1.5 lakh crore in the same period.
  • Shifting production could reduce Apple's profit margins significantly.
  • Experts advise against moving manufacturing due to cost and logistical issues.