However, a report by the Global Trade Research Initiative (GTRI) states that manufacturing iPhones in India will remain more cost-effective than producing them in the US, even with the proposed tariff.
According to the report, assembly workers in India earn approximately 230 dollars per month, while in the US, particularly in California, wages could reach 2,900 dollars per month.
As a result, the cost to Apple for assembling an iPhone in India is about 30 dollars, whereas it would rise to 390 dollars in the US.
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President Trump reportedly asked Apple CEO Tim Cook to stop expanding iPhone production in India, saying at the Doha Summit that he did not want Apple building in India.
Despite this, the GTRI report emphasizes that Apple benefits from India's Production Linked Incentive (PLI) scheme, which supports manufacturing in the country.
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If Apple moves production to the US, its profit per unit could fall from 450 dollars to just 60 dollars unless it increases retail prices to offset the higher costs.
In terms of global value contribution, India and China each earn around 30 dollars per iPhone assembled, less than 3 percent of the retail price.
The US retains the largest profit share at 450 dollars, followed by Taiwan with 150 dollars for chip manufacturing and South Korea with 90 dollars for OLED and memory components. India's iPhone production also supports roughly 60,000 jobs.
It can be argued that Trump's aggressive tariff stance risks disrupting complex global supply chains, pushing up prices for American consumers without significantly benefiting domestic production.