Manufacturing iPhones in US may raise prices to $3,000 from $1,000

Industry experts have stated that if the USA starts manufacturing iPhones in the US as compared to India, it will cost $3,000, which is almost three times the current cost of $1,000 per iPhone. These reactions come in the wake of President Donald Trump's statement, when he said that he had spoken with the Apple CEO Tim Cook and asked him to limit Apple's expansion in India.

If Apple moves manufacturing from India to the US or another Western country, it will face higher labor costs, causing production expenses to surge. To remain competitive, Apple may need to reduce its profit margins, making the shift financially challenging despite the strategic appeal of relocating closer to Western markets.

While it is too early to react to the statements made by the US President, as far as Apple is concerned, they have turned out more than 22 billion dollars’ worth of iPhones from India in the last one year. Apple already has three manufacturing facilities in India and is planning for two more.

Apple had also started partly moving its manufacturing from China to India.

There are chances of things coming back to normal in a few days, but if Apple decides to move out of India in the long-term, it will have a clear impact on Indian markets, especially employment. At the same time, it is not easy to begin manufacturing iPhones in the US.