iPhone Could Cost Up to ₹3 Lakhs If Manufactured in the U.S., Say Experts
The iPhone, one of the most popular smartphones globally, is largely manufactured in countries like China and India, where production costs are relatively low. Apple Inc. has increasingly focused on expanding its manufacturing operations in India, with key production facilities operating near Chennai, Thanjavur, and Bengaluru.
However, former U.S. President Donald Trump had previously advised Apple CEO Tim Cook to shift iPhone manufacturing entirely to the United States to support American industry and create more domestic jobs. This suggestion, if implemented, could have a massive impact on the price of iPhones.
According to economists and industry experts, producing iPhones in the U.S. could increase manufacturing costs by nearly three times. This is due to several factors such as higher labor wages, expensive infrastructure, higher taxes, and stringent regulations in the United States. As a result, an iPhone that currently costs around ₹1 lakh in India could cost up to ₹3 lakhs if entirely made in America.
Such a price hike could drastically affect consumers, particularly in developing countries like India, where smartphones are already seen as premium products. Many users currently purchase iPhones through EMI plans or credit options. If the price rises to ₹3 lakhs, it would move beyond the reach of a majority of middle-class consumers, thereby shrinking Apple’s market share.
Moreover, Apple’s manufacturing operations in India have created employment for thousands of Indian workers. If Apple relocates its production facilities to the U.S., this could lead to significant job losses in India, affecting not just factory workers but also suppliers, logistics providers, and other related industries.
Given these economic implications, experts suggest that Apple is likely to maintain a balanced approach, continuing production in both India and the U.S. to avoid disrupting supply chains, pricing strategies, and employment. Apple may increase automation in the U.S. to reduce labor costs, but complete relocation is unlikely in the near future.
It’s also important to consider the geopolitical aspect. With increasing U.S.–China tensions, companies like Apple are seeking alternatives to Chinese manufacturing. India has emerged as a strong candidate due to its large workforce, improving infrastructure, and government incentives under the “Make in India” initiative.
In conclusion, manufacturing iPhones exclusively in the United States would lead to a significant surge in prices, potentially reaching ₹3 lakhs per unit. This could make the device unaffordable for a large segment of customers and impact Apple’s global sales. To maintain competitiveness, Apple must balance cost, production efficiency, and market accessibility. The current hybrid model—where manufacturing is distributed between the U.S., India, and other countries—appears to be the most sustainable path forward.
