The Global Trade Research Initiative (GTRI) recently reported on iPhone manufacturing. It reveals that manufacturing iPhones in India remains cost-effective. This is despite potential 25% tariffs imposed by the US. Labor costs in India are significantly lower, with assembly workers earning $230 per month compared to $2,900 in California.
Key Findings:
Assembly Costs: Assembling an iPhone in India costs $30, while in the US, it would cost $390.
Labor Costs: Indian assembly workers earn $230 monthly, 13 times less than California’s minimum wage.
iPhone Value Chain: Apple retains 45% of the value, $450 per device, through brand, software, and design.
Global Contributions:
US Component Makers: Qualcomm and Broadcom add $80 per device.
Taiwan: Contributes $150 through chip manufacturing.
South Korea: Adds $90 via OLED screens and memory chips.
Japan: Supplies components worth $85, mainly camera systems.
India’s Growing Role in iPhone Manufacturing
India now accounts for 14% of global iPhone output, making it Apple’s largest manufacturing hub outside China. The country shipped $2 billion worth of iPhones to the US in March alone, a record monthly figure. Apple’s expansion in India is expected to generate 600,000 new jobs by 2027-28 ¹ ².
Despite potential tariffs, India’s competitive labor costs and government incentives make it an attractive location for Apple’s manufacturing needs.
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