Can Tim Cook Shift iPhone production away from India?
What’s the matter? US President Donald Trump said he told Apple CEO Tim Cook not to build products in India. “We’re not interested in you building in India, India can take care of themselves ... we want you to build here,” Trump said.
Apple’s iPhone production Currently, 15% of the iPhones are produced in India and rest in China. Due to US-China, trade war, Cook was considering an aggressive expansion in India ramping up production to nearly 40%.
Shift has already begun! Apple’s supplier, Foxconn, secured approval for a $433 million semiconductor plant in Uttar Pradesh, India, in a JV with HCL Group. The plant is expected to be operational by 2027.
Shift has already begun! Apple’s supplier, Foxconn, secured approval for a $433 million semiconductor plant in Uttar Pradesh, India, in a JV with HCL Group. The plant is expected to be operational by 2027.
What could Apple lose? In India, the average assembly worker earns about $290 per month but in the US, Apple has to pay ranging from $1,200 to over $3,000. Assembly cost per device will increase from around $30 (India) to $390 (US).
What could India lose? India's role in iPhone manufacturing is mainly in final assembly, which has low margins but generates employment. Since 2021, it has created 150,000 direct and 300,000 indirect jobs.