Even after U.S. President Donald Trump suggests a 25% tariff on non-U.S.-made Apple iPhones, a recent analysis by the Global Trade Research Initiative (GTRI) shows that iPhones produced in India would remain competitively priced in the U.S. The fact is being brought to light at a time when Apple is getting increasingly diversified away from China.
The Global Anatomy of a \$1,000 iPhone
Based on the GTRI report, the value chain of an iPhone that costs \\$1,000 is dispersed across over a dozen countries. Although final assembly in India contributes negligibly to the value of the phone, the strategic switch reduces reliance on Chinese manufacturing and permits Apple to skirt heavier tariffs.
Tariff Won’t Fully Offset India’s Cost Advantages
Despite a 25% tariff on non-U.S. made iPhones, the report puts the cost of India-assembled models still lower for American buyers compared to fully made products in the U.S. This is owing to lower labor costs, well-oiled supply chains, and positive trade dynamics between the U.S. and India.
Apple’s India Bet Looks Wiser Than Ever
As geopolitics redefine world commerce, Apple’s ramping up of investment in India seems foresightful. The GTRI results reinforce a larger thesis that India has the potential to be a strategic fulcrum in Apple’s worldwide manufacturing strategy — enabling it to stay price competitive while staying within new trade regulations.
