If iPhones were manufactured in the United States instead of India, their price could triple, reaching ₹2.5 lakh (approximately $3,000 USD), resulting in significant economic losses for customers, the company, and the market.
Imagine an iPhone, currently priced at ₹85,000, suddenly costing ₹2.5 lakh! This isn't fiction; it's a real possibility if Apple shifts its iPhone production from India to the United States. Manufacturing costs in the US are roughly three times higher, leading to a dramatic price increase for iPhones.
This controversy arose after a statement by former US President Donald Trump claiming he had spoken with Apple CEO Tim Cook and urged him against expanding in India. This statement triggered b reactions from Indian industry leaders and technology experts, raising concerns for the Indian economy and its technology sector.
Why would shifting iPhone production from India to the US triple the price?
Prashant Girbane, Director General of the Maharashtra Chamber of Commerce, Industry and Agriculture (MCCIA), stated that manufacturing an iPhone in the US could increase its cost to approximately $3,000 or ₹2.5 lakh. Currently, the phone is manufactured in India or China for around $1,000 (₹85,000). He questioned whether US consumers would be willing to pay such a high price.
Girbane also pointed out that approximately 80% of Apple's manufacturing takes place in China, employing around 5 million people. Apple's increased production in India aims to reduce its dependence on China, not to take jobs away from the US.
Leaving India would be costly for Apple
N.K. Goyal, Chairman of the Telecom Equipment Manufacturers Association (TEMA), revealed that Apple manufactured iPhones worth ₹1.75 lakh crore in India in the past year. The company operates three manufacturing plants in India and plans to open two more. Therefore, leaving India would result in significant financial losses for Apple.
Goyal also noted that the constantly changing global trade regulations and tariffs make leaving India an unwise decision for Apple.
India's Importance to Apple
Jaideep Ghosh, former KPMG partner, highlighted the crucial role of Apple's ecosystem in the Indian economy and employment. A prolonged withdrawal of Apple from India would have a significantly negative impact on the country. Manufacturing iPhones in the US would be challenging due to the much higher labor costs.
Made in India iPhones benefit everyone
Experts believe that continued iPhone production in India benefits both the company and consumers. US manufacturing would lead to skyrocketing prices, potentially alienating customers and impacting the company's profits.
All eyes are now on Apple and the US government's decision, but for now, India remains the most suitable location for iPhone manufacturing.
