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    Home - Featured - US-made vs India-made iPhone: Why Apple wants to bet big on India despite Donald Trump’s displeasure
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    US-made vs India-made iPhone: Why Apple wants to bet big on India despite Donald Trump’s displeasure

    KavishBy KavishMay 16, 2025No Comments4 Mins Read
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    US-made vs India-made iPhone: Why Apple wants to bet big on India despite Donald Trump’s displeasure
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    As speculation brews over Apple potentially moving its iPhone assembly from India to the United States, experts warn that the tech giant may have more to lose than the South Asian nation. According to a report by Ajay Srivastava, founder of the Global Trade Research Initiative (GTRI), such a decision could dent Apple’s profit margins substantially while offering India an opportunity to shift focus towards deeper and more advanced manufacturing.

    Currently, Apple assembles around 15 per cent of its iPhones in India, with the rest still being produced in China. While the Indian contribution might appear small, the debate is heating up, especially amidst political undertones linked to former US President Donald Trump’s push to bring manufacturing jobs back to American soil.

    “India earns less than $30 per iPhone assembled here, much of which is returned to Apple through subsidies under the Production Linked Incentive (PLI) scheme,” Srivastava noted. “The true lion’s share of value lies with countries contributing design, software, and key components, not with the assembling nations.”

    A typical iPhone, sold in the US for around $1,000, sees its value distributed globally. The United States gains about $450 through Apple’s branding and software. US-based component manufacturers like Qualcomm and Broadcom pocket another $80. Taiwan adds $150 via chip production, South Korea earns $90 through OLED displays and memory chips, while Japan contributes $85, primarily through camera components. Smaller components sourced from Germany, Vietnam, and Malaysia add up to $45. In comparison, India and China, where the actual assembly takes place, earn just $30—less than three per cent of the total device value.

    However, while the monetary returns on assembly are modest, the employment impact is significant. Over 60,000 Indians and approximately 300,000 Chinese workers are currently engaged in these assembly lines. This, Srivastava says, is precisely why Trump has targeted this segment for reshoring jobs.

    “This is not about high-tech capabilities. It’s about employment. That’s what Trump wants to bring back to the US,” he said.

    But such a move comes at a cost—one that Apple may find difficult to ignore. In India, the company pays an average of $290 per month to assembly workers. In the US, complying with minimum wage laws would increase this to $2,900 per worker, raising the assembly cost from $30 to nearly $390 per device. That could slash Apple’s per-unit profit from $450 to just $60, unless it opts to raise iPhone prices—an unpalatable decision for American consumers already grappling with inflation.

    “Will Tim Cook sacrifice Apple’s high profit margins in the name of patriotism, or will he stick to cold, commercial logic?” Srivastava questioned.

    Some analysts believe Trump’s recent rhetoric may be part of a broader negotiation strategy aimed at securing a more favourable trade deal with India. Notably, the former president has not made similar public demands about Apple’s production in China, where 85 per cent of iPhones are still manufactured, raising eyebrows among trade experts.

    Meanwhile, India may find a silver lining if Apple does shift operations. “If Apple moves out, India could stop supporting low-value assembly and redirect efforts into building capability in chip production, battery manufacturing, and display technology,” Srivastava argued.

    Trump’s remarks on iPhone manufacturing

    President Donald Trump urged Apple CEO Tim Cook to stop expanding manufacturing operations in India even as New Delhi extended a “no-tariff” offer to the United States.

    The remarks, made during Trump’s state visit to Qatar, come at a time when tensions are already high following his controversial claim of brokering a ceasefire between India and Pakistan, an assertion India has firmly denied.

    Speaking about his recent interaction with the Apple chief, Trump stated, “I had a bit of a disagreement with Tim Cook yesterday. He’s setting up operations all across India. I told him, I don’t want you building in India. India can look after itself.”



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