US President Donald Trump warned Apple CEO Tim Cook that tariffs of upto 25% might be levied on Iphones manufactured outside the U.S, in an aim to curb Apple’s manufacturing unit’s expansion into India. Trump’s May 2025 Truth Social post stated, “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else.” However, even tariffs might not be enough to stop India’s clandestined iPhone hookup.
According to a Global Trade Research Initiative (GTRI), Apple makes about $450 dollars in profit after its retail sale of any apple product priced at $1000. This is after it outsources the entirety of it’s making to asian countries like Taiwan, which manufactures the chips for $150, South Korea that adds the OLED screens at a cost of about $90 followed by Japan for it’s camera systems at $80 dollars. US Private hardware companies like Qualcomm and Broadcom add chips worth around $80. Then these are assembled in either India or China for about $30. A normal Indian labour earns about $230 monthly for assembly work while US workers will likely get $2,900 in states like California. Therefore, even with a 25% tariff, a $1,000 iPhone made in India incurs a $250 tariff plus $30 assembly cost, totaling $280. Shifting to the U.S. could slash Apple’s profit per each device from $450 to $60 unless retail prices rise significantly, potentially to $3,500 per iPhone. On top of this, the Modi government’s Production Linked Incentive (PLI) scheme will likely lower the cost of production by even more.
Another reason for Apple to continue operations in India happens to be because of Foxconn’s 300-acre Devanahalli facility, located near Bengaluru’s Kempegowda International Airport. Foxconn is the world’s largest contract manufacturer. The Taiwanese company’s India branch is all set to become it’s second largest plant globally, employing around 40000 workers. Foxconn aims to produce 100,000 iPhones at its India plants in 2025 essentially doubling the iPhone production in India.
