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Even with a proposed 25% U.S. tariff, iPhones made in India remain more affordable due to lower labor costs and government incentives. Learn how the Made in India strategy helps Apple keep the iPhone price in the U.S. competitive.<br>
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Title: Made-in-India iPhones Still Cheaper in the U.S. Despite Proposed Tariff Subtitle: An Overview of Apple’s Cost-Saving Strategy Presented by: [Jsb Market Research] Date: 26-05-2025 Introduction Apple manufactures a large number of iPhones in India. U.S. has proposed a 25% tariff on imported electronics. Despite this, Made-in-India iPhones remain cheaper than U.S.-made ones.
Cost Comparison Assembly Costs per iPhone: India: $30 U.S.: $390 With Proposed Tariff: India + 25% Tariff (~$250): $280 Still $110 cheaper than U.S. manufacturing. Labor Cost Difference Indian Worker: ~$230/month American Worker: ~$2,900/month Labor cost is the primary driver of cost disparity.
Phone Value Breakdown Apple Retains: $450 for brand, software, and design. Component Suppliers: Taiwan: $150 South Korea: $90 Japan: $85 USA: $80 Germany, Vietnam, Malaysia: $45 India/China (Assembly): $30 India's PLI Scheme Production-Linked Incentive (PLI) reduces costs further. Encourages Apple’s investment in India. Boosts India’s role in global electronics manufacturing.
Impact on iPhone Price in US Lower production cost helps keep iPhone prices in US competitive. Avoids steep price hikes for American consumers. Apple balances cost with global supply chain strategy. Conclusion Even with tariffs, Made in India remains cost-effective. Apple benefits from low labor cost + PLI incentives. U.S. production remains expensive due to high wages. India continues to be a key manufacturing hub for Apple.