If tech major decides to move its manufacturing from India to the United States or another Western country, it will face higher labour costs, causing production expenses to surge.
New Delhi: US President Donald Trump has asked Apple CEO Tim Cook to stop building in India as “India can take care of themselves.” While Trump has asked Apple CEO Tim Cook to halt production in India and bring operations back to the United States, experts feel that the Cupertino-based tech company may ignore the call as shifting iPhone manufacturing to the US could result in a threefold increase in prices of the smartphones.
“A lot better thought would prevail both in the Apple company and the US administration. They would realise the following facts. First, if they decide to manufacture in the USA as compared to China, India, or Vietnam, a USD 1,000 iPhone would cost USD 3,000. Are American consumers willing to pay USD 3,000 for that iPhone?” asked Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA).
According to Jaideep Ghosh, former partner at KPMG, iPhones worth Rs 1.75 lakh crores were manufactured in India in FY 2025, which ended in March, compared to Rs 1.2 lakh crores last year.
“It’s not easy to begin manufacturing iPhones in the US,” he stressed and added that if Apple decides to move out of India in the long-term, it will have a clear impact on Indian markets, especially employment.
If tech major decides to move its manufacturing from India to the United States or another Western country, it will face higher labour costs, causing production expenses to surge.
To remain competitive, Apple may need to reduce its profit margins, making the shift financially challenging despite the strategic appeal of relocating closer to Western markets.
Meanwhile, Apple has made no indication of scaling back its operations in India. Sources within the Indian government confirmed that officials had spoken with Apple executives following Trump’s comments, and were assured that the tech giant’s investment plans for India remain “intact.”
