U.S.-Made iPhone Could Cost You Rs 3 Lakh Now - Here's Why

As per a recent report by CNN, if Apple produced iPhones in the United States completely, the cost of a single iPhone could increase to $3,500 (approximately Rs 3 lakh) — over three times the current average price of $1,000.

The US government recently imposed tariffs on products coming from other nations in a bid to make businesses relocate manufacturing activities back to America. President Donald Trump is confident the action will create millions of new jobs and spur local industries.

What's Behind the Price Surge?

The fundamental basis for such an astronomical price jump would be America's expensive labor and infrastructure costs. In contrast with China where manual labor comes cheaper, erecting and keeping elaborate factories within the United States of America would call for the expense of billions of dollars in funds.

Apple would have to start a fresh new supply network as well as factory production and set up a mechanism it had perfected over three decades in the Orient.
It will take at least three years and cost $30 billion to shift only 10% of Apple's supply chain to the United States, as reported.

Also Read: Why Did Trump Pause Tariffs for 90 Days—And What Comes Next?

Apple's Global Supply Chain

Apple's supply chain now is international. Chips are produced in Taiwan, screens in South Korea, and other parts in China. These components are assembled in China, where there are factories already geared up for mass production. 

This international setup enables Apple to be able to keep the cost of production low and uphold high profit margins.

The Push for 'Made in America'

The United States government, led by President Donald Trump, has imposed tariffs to incentivize American businesses to bring back manufacturing home. The aim: provide local employment and enhance domestic manufacturing.

But experts caution that while that might be good for American workers, it could increase prices substantially for consumers particularly in sectors such as smartphones where global supply chains are entrenched.

Apple's manufacturing could be good for American industry, but consumers might pay the price.