Trump’s 'Made In USA' Push For Apple iPhones Could Backfire With Massive Price Shock

Amid US tarrifs and Trump's 'Made in America' policies, tech giant Apple is facing a tough time as it plans to increase manufacturing capacity in India.

US President Donald Trump has publicly urged Apple to stop expanding its manufacturing operations in India and instead focus on producing its devices domestically in the United States.

Speaking during a recent visit to Qatar, Trump said, "We’re not interested in you building in India. They can take care of themselves, they are doing very well," emphasising his long-standing call to shift global supply chains back to the US.

Industry experts have warned that manufacturing iPhones entirely in the US would come at a steep cost.

A teardown and cost analysis, according to Mashable, found that a fully US-assembled iPhone could cost around $2,000 to $3,500, depending on assumptions about labour, facilities, and supply chains.

This price surge translates to roughly Rs 3 lakh in India, making the iPhone financially inaccessible for many.

This hike in prices will not only make iPhone unaffordable in emerging markets but also in the US, where Apple holds a large share of the smartphone market.

Indian industry analysts also emphasised that the US lacks the supply chain scale and low-cost labour advantages of countries like India and China, factors that help keep iPhone prices competitive globally.

Jaideep Ghosh, a former partner at KPMG, cautioned that a long-term exit by Apple from India could significantly affect the country’s markets, particularly in terms of employment.

"It's not easy to begin manufacturing iPhones in the US," he added.

India currently plays a pivotal role in Apple's diversification strategy.

After disruptions in China and growing geopolitical tensions, Apple has ramped up production in India, which now accounts for 20 per cet of the company’s global iPhone output, with projections to reach 25 per cent by the end of 2025.

Experts argue that any significant move away from global manufacturing hubs like India would be costly and disruptive.

Wedbush Securities analyst Dan Ives noted that shifting even a portion of production to the US would require billions in capital investment and could result in major delays and consumer price shocks.

If Apple were to drastically increase iPhone prices due to shifting production to the US, it could hand a significant advantage to its Android competitors.

Unlike Apple, Android phone makers such as Samsung, Xiaomi, and OnePlus already manufacture large portions of their devices in cost-effective markets like India and Vietnam, allowing them to offer high-performance smartphones at more accessible price points.

A steep rise in iPhone prices, estimated to reach as high as Rs 3 lakh if made entirely in the US, could push price-sensitive consumers toward premium Android alternatives like Samsung.

Following US President Donald Trump's public criticism of Apple’s manufacturing operations in India, the tech giant has assured the Indian government that there will be "no change" in its investment plans for the country, Times of India reported, citing government sources.

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