Donald Trump’s 25 % tariff: Despite the GTRI report, iPhones will still be cheap in India in the United States

by SkillAiNest

Even if the United States had to impose 25 % tariffs on iPhones manufactured in India, the cost of total production would be much lower than the manufacture of devices in the United States.

This comes between US President Donald Trump’s statement, if Apple decides to make it in India, the iPhones have been threatened to impose 25 % of the taxes. However, the GTRI report states that manufacturing is cost -effective in India despite such duties.

The report has broken the current value chain of the iPhone $ 1,000 (about Rs 83 83,400), which includes a contribution to more than a dozen countries. Apple maintains the largest share of about $ 450 (about Rs 37.530) per device, through its brand, software and design.

It also includes that US components, such as Qualcomm and Broadcom, add $ 80 (about Rs 6,672), while Taiwan contributes to $ 150 (about Rs 12,510) through chip manufacturing. South Korea has increased $ 90 (about Rs 7,506) through OLED screens and memory chips, and Japan mainly supplys components of 85 (about 7,089 rupees) through the camera system. Germany, Vietnam, and Malaysia are part of another $ 45 (about Rs 3,753) through small sections.

GTRI said that despite being a major player in China and India, the iPhone Assembly, only Rs 30 (about Rs 2,502) per device. This is less than 3 % of the total retail price of the iPhone.

The report argues that making an iPhone in India is still economically viable, even if 25 % tariffs are applied.

The main reason is that there is a rapid difference in labor costs between the United States in India and the United States, assembly workers earn about $ 230 (about Rs 19,182) per month, while in US states like California, labor costs can increase the minimum wage laws, a 13 -sin increase (about $ 2,860).

As a result, the accumulation of iPhone in India is about $ 30 (about Rs 2,502), while the same process in the United States will cost $ 390 (about Rs 32 32,526). In addition, Apple also gets the benefit of the government -linked output (PLI) on the iPhone manufacturing in India.

If Apple has to move production to the United States, its profit per iPhone can fall from $ 450 (about 37.530 rupees) only $ 60 (about Rs 5,004), unless retail prices are significantly increased.

The GTRI report highlights how global priced chains and labor -cost differences make India a competitive option for manufacturing, even despite potential restrictions on US trade.

(This story has not been edited by the NDTV staff and has been made auto from the Syndicate Fed.)

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