News India Live, Digital Desk: IPhone production us: US President Donald Trump wants Apple to stop making iPhones in countries like India and China and start making them completely in the US. This demand came through a direct post on Truth Social, in which Trump warned Apple that if he does not transfer production to America, he would have to pay 25 percent tariffs He wrote, “I hope that the construction and construction of their iPhones sold in the United States will be in the United States, not in India or any other place.” “If this does not, then Apple will have to pay at least 25% tariff to America”
Later he told reporters at the Oval Office that this policy would not be limited to Apple only. “This will apply to Samsung and any company that makes that product. Otherwise, it would not be appropriate. When they build their own plant here, there is no tariff,” he said.
iPhones are global products, not only in a country
Many people do not realize that iPhone is not made in one place. According to GTRI reports, every iPhone consists of components from at least a dozen countries. The US creates a software and design of about $ 450 on every phone, and its companies such as Qualcomm and Broadcom add $ 80 more to the component. Taiwan handles $ 150 chipmaking, South Korea adds $ 90 OLED screen and memory chips, and Japan makes $ 85 camera. Small parts come from countries such as Germany, Malaysia and Vietnam, which adds about $ 45 more.
India and China are the last stop. They keep everything together, but earn around $ 30 per device. The work is basic but labor-thunder. There are about 3 lakh employees assembled in China, about 60,000 in India. This is the kind of work that Trump wants to bring back to America.
Real cost of making iPhone in America
Suppose Apple agrees and takes the assembly to America. It will not be cheap. Workers in India earn around ₹ 19,800 per month ($ 230). In California, only the minimum wage will make this number ₹ 2.52 lakh ($ 2,900) monthly. This means that the labor cost for each iPhone will increase from ₹ 2,600 ($ 30) to ₹ 33,900 ($ 390). The prices will have to increase until Apple cuts huge profits.
The Associated Press reported that the price of iPhone in the US can range between ₹ 1.74 lakh to ₹ 3.05 lakh ($ 2,000 to $ 3,500). If you compare this to ₹ 79,900 in India today and the initial price of about $ 999 in the US, then the difference is huge. The GTRI report states, “Apple’s profit will be reduced from $ 450 to about $ 60.”
Jobs versus strength
Transferring assembly to the US can immediately create more than 60,000 jobs. If Apple also leaves China, this number can reach 3 lakhs. This is a big increase in employment. But these will be basic factory roles, not technical jobs. And the result will be that iPhone prices will increase for all.
Transferring production is not as easy as flipping switch
If Apple also decides to change, it will not happen overnight. It will cost billions of dollars to erect manufacturing capacity in the US and it will take at least two to three years to start. This process is long and expensive, from finding ground searching to the testing of setting up a supply chain, training employees to running production.
And as long as these factories are ready to make the first iPhone manufactured in the US, Donald Trump will not be in the Oval office. So the question is whether Apple will bet billions of dollars on such a policy which will probably be able to run only for a term only?
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