A ‘Made in US’ iPhone could cost as much as $3,500 (over ₹2.98 lakh) due to the absence of a fully-integrated supply chain in the country, top market analysts have said.
Dan Ives, Global Head of Technology Research at Wedbush Securities, told CNN that the idea of producing iPhones entirely in the United States is unrealistic and would significantly drive up costs.
“You build that supply chain in the US, with a fabrication facility in West Virginia and New Jersey, and iPhones would cost $3,500,” Ives said, highlighting the financial and logistical hurdles.
Shifting Supply Chain To US Would Take Years And Billions
Analysts estimate that Apple would require at least three years and an investment of $30 billion to move just 10% of its supply chain to the US.
Ives emphasised that replicating Apple’s complex and efficient Asian manufacturing network in the US is not feasible in the near term.
Apple Turns To India As Strategic Manufacturing Hub
Apple CEO Tim Cook recently stated during the company’s quarterly earnings call that ‘the majority’ of iPhones shipped to the US in the June quarter will soon come from India.
The statement reinforces Apple’s growing reliance on India as a manufacturing base.
Sources familiar with the matter confirmed that India remains a key player in Apple’s long-term strategy. “There is no change in Apple’s investment plans in India,” they said, adding that Apple is committed to the ‘Make in India’ initiative.
US Tariff Threats Add Pressure
US President Donald Trump has threatened to impose a 50% tax on all imports from the European Union and a 25% tariff on Apple products unless the company begins manufacturing iPhones domestically.
These trade pressures have further complicated Apple’s supply chain decisions.
India Emerges As Apple’s Manufacturing Powerhouse
India has rapidly become a critical node in Apple’s global supply chain.
Prabhu Ram, Vice President at CyberMedia Research (CMR), noted that India offers a conducive policy environment, a growing domestic market, and expanding export potential, making it an ideal choice for global tech companies.
In the January-March quarter of 2025, Apple recorded the highest growth among the top five smartphone brands in India, with shipments rising by 23%, according to IDC.
Apple shipped a record three million iPhones in Q1, with the iPhone 16 emerging as the top-selling model, accounting for 4% of total smartphone shipments.
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