iPhones May Cost Rs 3 Lakh If Apple Moves Production to US

The iconic iPhone, long considered a premium device in the global smartphone market, may soon become dramatically more expensive if Apple shifts its manufacturing from India to the United States. According to industry experts, such a move could cause the price of a single iPhone to soar to as much as Rs 3 lakh (around USD 3,000), nearly triple its current cost.

The debate around Apple's manufacturing strategy intensified following a statement by US President Donald Trump on Thursday. Trump revealed that he had spoken directly with Apple CEO Tim Cook, urging him to limit the company's expansion in India and instead consider domestic production in the United States. The comment has triggered concern among trade experts, tech industry stakeholders, and economic observers.

In response to Trump's remarks, Prashant Girbane, Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), issued a firm warning. He stated, “If Apple decides to manufacture in the USA instead of countries like India, China, or Vietnam, then a USD 1,000 iPhone would cost USD 3,000. Are American consumers ready to pay that much?” Girbane emphasized the economic impracticality of producing iPhones entirely in the US due to significantly higher labor costs and operational expenses.

Girbane also pointed out that the shift in manufacturing from China to India is part of Apple’s broader strategy to diversify its supply chain, not an abandonment of US production. “The manufacturing and jobs aren’t leaving the US for India. They are moving from China to India to protect Apple from depending on a single, politically sensitive region,” he added.

Currently, China is still home to nearly 80% of Apple’s manufacturing operations, supporting approximately 5 million jobs. However, India has emerged as a critical alternative in Apple’s global production network. In the fiscal year 2025, which ended in March, iPhones worth Rs 1.75 lakh crore were manufactured in India, up from Rs 1.2 lakh crore the previous year. This shift indicates India’s growing importance in Apple’s global operations and supply chain strategy.

NK Goyal, Chairman of the Telecom Equipment Manufacturers Association (TEMA), echoed Girbane’s sentiment, urging observers to view President Trump's comments cautiously. “India has already produced over USD 22 billion worth of iPhones in the past year. Apple has three active manufacturing plants in India and is planning to open two more. It’s a strategic move to reduce reliance on China, not undermine US interests,” said Goyal.

He further explained that it would be financially and logistically detrimental for Apple to exit India, especially given the ongoing global tariff changes and increasing restrictions on international trade. “If Apple leaves India, it will face considerable losses. We believe they won’t take that step,” Goyal affirmed.

Former KPMG partner Jaideep Ghosh also weighed in, highlighting the broader economic implications for India. He noted that Apple’s presence in India has created substantial employment and infrastructure development opportunities. “If Apple decides to move out of India long-term, it will have a clear and negative impact on the Indian market, especially in terms of jobs,” said Ghosh. He stressed that replicating Apple’s Indian manufacturing ecosystem in the US would be a formidable challenge due to labor cost disparities and the time needed to scale up.

Indeed, while shifting production to the US may offer Apple some strategic benefits — such as being closer to its primary consumer base and reducing geopolitical risk — it also brings major cost challenges. Labor in the US is significantly more expensive, regulations are stricter, and production speed may lag behind Asian manufacturing hubs.

Analysts argue that to stay competitive in pricing, Apple would either need to absorb these high costs by reducing its profit margins or pass them on to consumers — likely making the iPhone unaffordable to many. Either option threatens to disrupt Apple’s finely balanced global pricing and sales strategy.

Another concern is the supply chain network itself. India, China, and Vietnam already have mature ecosystems for electronics manufacturing, complete with skilled labor, established logistics, and supplier networks. The US, while technologically advanced, would need to rebuild or scale up such infrastructure to meet Apple’s production demands — a process that could take years.

Apple has yet to officially respond to Trump’s comments, but the industry consensus remains that India will continue to play a vital role in Apple’s global manufacturing future. The company has made significant investments in its Indian operations and continues to expand, both in manufacturing and retail.

Ultimately, while geopolitical rhetoric may temporarily stir debate, commercial decisions for tech giants like Apple are dictated by economic viability and long-term supply chain resilience. For now, experts agree that manufacturing iPhones in India — not the US — remains the most practical and cost-effective choice. And if that changes, consumers could face the staggering reality of a Rs 3 lakh iPhone.