Rising Concerns as Apple Considers Moving Operation from India

Apple India Operations, iPhone Manufacturing, Apple Supply Chain, Made in India, Apple Production Shift, India Manufacturing Hub, Apple China Shift, US-India Trade Relations, Apple Tariff Strategy, Apple Manufacturing Costs, Apple Job Creation India, Apple Infrastructure Challenges, Apple Supplier Delays, Apple Production Costs, Apple US Manufacturing PushOn Thursday, US President Donald Trump discussed with Apple CEO Tim Cook about reducing the company’s operations in India. This remark has urged Apple to limit its expansion in India. Industry leaders have raised strong concerns over US President Donald Trump's recent remarks and stated that manufacturing Apple iPhones in the United States instead of India could increase the production costs.

Director General of the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), Prashant Girbane, pointed out the cost implications. "If Apple were to shift its manufacturing base from India or China to the US, the cost of a single iPhone could rise from $1,000 to as much as $3,000. The question is – are American consumers prepared to pay that price?" he asked.

Girbane clarified that the decision to increase manufacturing in India was a strategic effort to diversify the supply chain away from China. The intention was not to withdraw the investment from the United States. “Currently, 80 percent of Apple’s production is based in China. Shifting part of this to India strengthens the supply chain and reduces dependence on one geopolitical partner,” he added.

NK Goyal, Chairman of the Telecom Equipment Manufacturers Association (TEMA), advised not to react hastily to any political remarks and stay calm. “We’ve learned not to react too quickly to such comments. Apple has already exported iPhones worth over $22 billion from India in the past year. With three manufacturing units already operational and two more planned, the company is clearly committed to its Indian operations,” Goyal said.

He also explained how the decision of relocating the operations from India to the United States could result in financial losses for Apple, especially considering the fluctuations in international trade tariffs. “Exiting India would not only mean losing on cost advantages but also navigating uncertain trade restrictions. It would be a commercially unsound decision,” he stated.

Former Partner at KPMG,Jaideep Ghosh, highlighted the rapid growth of Apple’s operations in India. “In FY 2025 alone, India produced iPhones worth ₹1.75 lakh crore, up from ₹1.2 lakh crore the previous year. This growth underlines the importance of India in Apple’s global strategy,” he said.

He warned that any decision in relation to moving away Apple operations from India would have serious consequences for the Indian economy, specifically in terms of employment. “Setting up iPhone manufacturing in the US is no simple task. US labour costs alone would dramatically inflate production expenses,” Ghosh noted.