Could a ‘Made in US’ Apple iPhone Price Reach Nearly Rs 3 Lakh?
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Synopsis
Could the price of an Apple iPhone made in the US skyrocket to nearly Rs 3 lakh? Analysts reveal that without a comprehensive supply chain, costs could escalate dramatically. Discover the implications for Apple, India, and the tech market.
Key Takeaways
- Cost of 'Made in US' iPhone could reach $3,500.
- Apple needs $30 billion to shift 10% of its supply chain to the US.
- India is becoming a key manufacturing hub for Apple.
- Apple's iPhone 16 saw record shipments in India.
- Global supply chain complexities impact pricing.
New Delhi, May 24 (NationPress) The cost of a ‘Made in US’ Apple iPhone could soar to an astonishing $3,500 (over Rs 2,98,000) due to the lack of a fully-integrated supply chain within the United States, leading analysts have revealed.
Dan Ives, who heads global technology research at Wedbush Securities, remarked to CNN that the concept of producing iPhones entirely in the US is a mere “fictional tale.”
He cautioned that attempting to recreate Apple’s intricate supply chain from Asia would likely lead to substantial cost increases.
As he stated, “If you establish that (supply chain) in the US with a fab in West Virginia and New Jersey, they’ll be $3,500 iPhones.”
Additionally, experts suggest that it would take Apple at least three years and an investment of approximately $30 billion just to relocate 10 percent of its supply chain to the US.
During the latest quarterly earnings call, Apple CEO Tim Cook mentioned that “the majority” of iPhones destined for the US in the June quarter will soon be produced in India.
Former US President Donald Trump has threatened a 50 percent tax on all imports from the European Union, in addition to a 25 percent tariff on Apple products unless iPhones are manufactured in the US.
However, informed sources indicate that India’s competitive advantages render it an ideal location for tech giants like Apple. The company has reiterated its commitment to manufacture products in India, thereby supporting the ‘Make in India’ initiative.
India has demonstrated significant value to major corporations like Apple. According to insiders, “There is no change in Apple’s investment plans in India.”
In recent years, India has emerged as a critical hub for Apple’s global supply chain. Major tech companies, including Apple, have recognized the economic benefits of establishing manufacturing operations in the country.
Apple achieved a remarkable 23 percent growth among the top five brands in India during the January-March quarter, shipping a record three million units, as reported by IDC. The iPhone 16 was the most shipped model in the March quarter, representing 4 percent of total shipments in India during Q1 2025.
According to Prabhu Ram, VP at CyberMedia Research (CMR), India is increasingly becoming a vital node in Apple’s global supply chain—not only due to its appealing domestic market but also because of its growing export capabilities and favorable policy environment.
Point of View
It's crucial to recognize the complexities of global supply chains in today’s economy. While there are legitimate concerns regarding the cost of domestic production, India's role in Apple's supply chain highlights the importance of strategic manufacturing decisions that can benefit both economies. We must approach these developments with a balanced perspective, understanding the nuances involved.
NationPress
22/07/2025
Frequently Asked Questions
Why could a 'Made in US' Apple iPhone cost so much?
Analysts predict that without a fully-integrated supply chain in the US, the production costs could rise significantly, potentially leading to prices around $3,500.
How long would it take for Apple to shift production to the US?
Experts estimate that it would take Apple at least three years and around $30 billion to relocate 10 percent of its supply chain to the US.
What is Apple's current manufacturing strategy?
Apple is increasingly relying on India for production, with plans for the majority of iPhones shipped to the US in the coming quarters to be made in India.
What is the impact of tariffs on Apple products?
Former President Trump threatened tariffs on Apple products unless manufacturing is moved to the US, which could further complicate pricing and supply chain logistics.
Why is India considered a strategic hub for Apple?
India's competitive edge, growing market, and favorable policies make it an attractive location for Apple's manufacturing and supply chain operations.
