Apple’s growing tensions with U.S. political figures and mounting trade pressure could push the tech giant to rethink its global manufacturing strategy — and Indian consumers might pay the price. Industry analysts are warning that if Apple shifts iPhone production out of India and back to the United States, the price of an iPhone in India could skyrocket, possibly crossing ₹3 lakh.
The Cost of Moving West
Manufacturing in the United States could increase Apple’s production costs by up to 90%, according to supply chain experts. Unlike India, where favorable labor rates and government incentives support tech manufacturing, U.S.-based assembly lines would carry significantly higher wage structures, operational costs, and regulatory burdens.
“If Apple begins producing its flagship devices entirely in the U.S., Indian consumers could face an unprecedented price surge,” said a Bengaluru-based tech analyst. “What costs ₹1.2 lakh today may go beyond ₹2.5 or ₹3 lakh due to added costs and taxes.”
Political Pressure and Strategic Shifts
The concerns follow recent remarks by former U.S. President Donald Trump, who claimed he told Apple CEO Tim Cook to halt iPhone production in India and bring it back home. Trump’s comments come at a time when Apple has been rapidly expanding its manufacturing footprint in India — a move welcomed by the Modi government as a sign of India’s rising status in global supply chains.
“Apple should be making iPhones in the United States, not India,” Trump stated, expressing disapproval over Apple’s increasing investment in Indian manufacturing and its supply chain reliance outside U.S. borders.
India’s Rise as a Manufacturing Hub
India has become a crucial part of Apple’s global production ecosystem. In 2023 alone, Apple manufactured iPhones worth over ₹1 lakh crore in the country. Major suppliers like Foxconn and Pegatron have established or expanded operations in states like Tamil Nadu, with government-backed Production Linked Incentives (PLIs) boosting local capabilities.
Analysts say India provides a cost-effective and politically stable alternative to China, which had dominated Apple’s production for over a decade.
Impact on Indian Consumers and Global Strategy
For Indian consumers, this geopolitical tug-of-war could result in luxury devices becoming even more exclusive. With taxes, duties, and now potentially higher base costs, Apple products might move further out of reach for many Indian buyers.
“Apple’s expansion in India has brought relatively better pricing and faster availability. Reversing that could not only raise prices but delay launches and strain the company’s market share here,” noted a senior policy researcher in Delhi.
At a time when Apple has been striving to expand its presence in India — from retail stores to local partnerships — any shift away from the region could dent its long-term growth plans in South Asia.
What’s Next?
While Apple has not officially confirmed any production changes, the warnings from analysts and the political undercurrents in the U.S. suggest the company may face tough choices ahead. For now, India remains a key pillar in Apple’s global strategy, but if external pressures push Apple in a different direction, Indian consumers could feel the financial fallout.
