iPhone made in USA could cost nearly ₹3 lakh, say analysts

If Apple were to manufacture its iPhones entirely in the US, the cost could skyrocket to an eye-watering $3,500 (over ₹2.98 lakh), analysts have said, citing the lack of a fully-integrated domestic supply chain.

Dan Ives, global head of technology research at Wedbush Securities, told CNN that the idea of making iPhones entirely in the US is a “fictional tale.”

“You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” Ives was quoted as saying.

Experts also estimate that shifting even 10 per cent of Apple’s complex Asian supply chain to the US would take at least three years and require an investment of around $30 billion.

Apple CEO Tim Cook said during the company’s latest quarterly earnings call that “the majority” of iPhones shipped to the US for the June quarter will soon come from India.

US President Donald Trump has threatened a 50 per cent tax on all imports from the European Union as well a 25 per cent tariff on Apple products unless iPhones are made in the US.

However, according to informed sources, India's competitive edge makes it a natural choice for tech giants like Apple, and the tech giant has assured the government of its commitment to manufacture its products and boost the ‘Make in India’ initiative.

The country has shown big companies like Apple the value of "Make in India”. According to people close to the matter, “There is no change in Apple’s investment plans in India”.

India has become a key hub for Apple’s global supply chain in recent years. Global tech giants such as Apple see a lot of economic sense in setting up manufacturing facilities in the country.

Apple registered the highest growth of 23 per cent among the top five brands in India in the January-March quarter, shipping a first-quarter record of three million units, an IDC report said. In the March quarter, iPhone 16 was the highest shipped model, accounting for 4 per cent of overall India shipments during Q1 2025.

India is increasingly becoming a critical and strategic node in Apple’s global supply chain, not just owing to its growing and attractive domestic market, but also its expanding export capabilities and conducive policy environment, according to Prabhu Ram, VP at CyberMedia Research (CMR). IANS