Even With 25% Tariff, 'Made in India' iPhones Will Still Be Cheaper in the US report from the Global Trade Research Initiative (GTRI) reveals that even if the US imposes a 25% import tariff on iPhones made in India, the total production cost would still be lower than manufacturing iPhones in the US. Manufacturing an iPhone in the US would cost around $900. Assembling in India costs about $30. Indian assembly workers earn about $250/month. In contrast, US labor costs are 10x higherโup to $2,900/month. India offers government incentives for iPhone production through the PLI scheme. Apple saves millions in taxes and gets subsidies in India. No such benefits in the US. also India has now built robust supply chains and skilled labor for electronics. iPhone factories (like Foxconn, Pegatron) in India have optimized costs and access to components faster and cheaper due to global trade partnerships.
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