Industry leaders have raised alarms that iPhone prices could skyrocket to ₹3 lakh if Apple shifts its production base from India to the United States. The speculation comes in response to a recent remark by US President Donald Trump, who said he urged Apple CEO Tim Cook to reconsider expanding operations in India.
Why iPhones Could Cost ₹3 Lakh in the US
Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), stated that manufacturing an iPhone in the US could push its cost from USD 1,000 to as high as USD 3,000 due to elevated labor and operational expenses.
“Are American consumers ready to pay USD 3,000—or ₹3 lakh—for an iPhone?” he asked, emphasizing that Apple’s current manufacturing setup benefits from the cost-efficiency of emerging markets like India, China, and Vietnam.
India’s Growing Role in Apple’s Global Supply Chain
According to Jaideep Ghosh, a former partner at KPMG, iPhones worth ₹1.75 lakh crore were manufactured in India during FY 2025, up from ₹1.2 lakh crore the previous year. “Apple’s ecosystem has become integral to India’s economy, creating jobs and enhancing exports,” he said.
NK Goyal, Chairman of the Telecom Equipment Manufacturers Association (TEMA), reinforced the sentiment, noting that Apple has three manufacturing plants in India and plans to add two more. “It would be a commercial misstep for Apple to pull out of India, especially with rising global tariff risks,” he said.
Apple’s Geopolitical Balancing Act
Currently, 80% of Apple’s manufacturing is based in China, providing jobs to nearly 5 million people. The company’s decision to diversify into India was intended to reduce dependency on China amid geopolitical tensions and global trade shifts.
“The shift to India isn’t about moving jobs from the US, but from China to diversify risk,” said Girbane. “Any relocation back to the US would disrupt that diversification and inflate consumer costs.”
Trump’s Push Against Apple’s India Expansion
President Trump’s remarks have added political heat to Apple’s global supply chain decisions. However, experts warn that such pressure may not lead to immediate operational changes, as Apple must weigh cost, scale, and global logistics when making supply chain decisions.
“Historically, we wait before reacting to statements made by President Trump. Apple’s decisions are driven by long-term strategy, not short-term political noise,” said Goyal.
Will Apple Move Production Back to the US?
While it might seem patriotic or strategic to bring iPhone manufacturing back to the US, doing so would force Apple to confront several obstacles:
- Labor costs in the US are significantly higher than in Asia
- Manufacturing infrastructure is more developed in India and China
- Tariff uncertainties could make US-based manufacturing nonviable
- Any move could reduce Apple’s profit margins or force massive price hikes
Experts agree that Apple’s best option is to maintain its operations in India and expand them further. Shifting to the US could lead to profitability challenges and a potential consumer backlash over inflated prices.
India’s iPhone Future: Strong and Strategic
India remains a crucial player in Apple’s supply chain strategy. With increasing export volumes, job creation, and government support for electronics manufacturing, India is expected to stay a key hub for iPhone production for the foreseeable future.
