Apple’s India Manufacturing: Why Moving iPhones to the US Would Be a Costly Mistake
Apple’s ‘Make in India’ strategy is not just about tapping into a growing market—it’s also about keeping production costs low. If Apple CEO Tim Cook were to shift iPhone manufacturing from India to the US under political pressure (like from Donald Trump), the company would face far bigger losses than India.
How Much Does Apple Earn from iPhones Made in India?
- For every 1,000iPhone∗∗,Apple’sprofitisaround∗∗1,000iPhone∗∗,Apple’sprofitisaround∗∗450.
- India’s share? Just $30 per device—mostly from low-value assembly work.
- The rest of the profits go to chipmakers (Taiwan, US), display suppliers (South Korea), and camera manufacturers (Japan).
What India Loses if Apple Exits
According to a Global Trade Research Initiative (GTRI) report, India’s losses would be minimal:
✔ Some low-wage jobs lost (currently ~60,000 workers in Apple’s supply chain).
✔ No major impact on exports, since most iPhone components are imported.
✔ India can refocus on deep manufacturing (chips, batteries, displays) instead of just assembly.
Why Moving to the US Would Hurt Apple More
If Apple shifts production to the US:
🔹 Labor costs skyrocket – Workers in India earn 290/month∗∗,butUSminimumwagelawswouldpushthisto∗∗290/month∗∗,butUSminimumwagelawswouldpushthisto∗∗2,900/month.
🔹 Assembly cost per iPhone jumps from 30to30to390.
🔹 Apple’s profit per device could drop from 450tojust450tojust60 (unless iPhone prices rise).
Why Isn’t Trump Pressuring Apple to Leave China Instead?
- China still makes 80-85% of iPhones, while India contributes just 15-20%.
- Moving from China would hurt Apple more due to established supply chains.
- Trump’s focus is on jobs—assembly work is labor-intensive, even if low-tech.
The Bigger Picture for India
- PLI subsidies benefit Apple more than India (most of the $30/device goes back as incentives).
- Reduced import duties on components hurt local manufacturers.
- India can pivot to high-value tech manufacturing (semiconductors, EV batteries) if Apple exits.
Conclusion: Why Tim Cook Won’t Quit India
- Moving to the US would slash profits.
- India’s low-cost labor keeps iPhone margins high.
- China remains Apple’s biggest manufacturing hub—not India.