17-05-2025, 07:24 AM
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India earns < US$30 per US$1,000 iPhone yet US$1,000 is added into US trade deficit
17-05-2025, 07:27 AM
India ...... earns around USD 30 for each iPhone manufactured locally and exported, but much of this amount is returned to Apple through the government’s Production Linked Incentive (PLI) scheme.
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"For every iPhone sold at around USD 1,000 in the US, India's share is less than USD 30. Yet, in trade data, the full USD 7 billion export value adds to the US trade deficit," Srivastava said.
India’s role in iPhone manufacturing is primarily limited to final assembly, which involves low margins but creates employment.
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The report breaks down the value chain of a USD 1,000 iPhone. Only USD 450 goes toward the physical device. U.S. firms like Qualcomm and Broadcom receive USD 80, Taiwan gets USD 150 for chip fabrication, South Korea earns USD 90 for OLED and memory components, and Japan contributes USD 85 for the camera. Germany, Vietnam, and Malaysia account for another USD 45. India and China receive just USD 30, which is less than 3% of the total value, despite being key locations for final assembly.
Manufacturing, although low in value addition, is significant for employment.
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"This is precisely the segment of the supply chain Trump wants to bring back to the U.S.—not because it's high-tech, but because it delivers jobs," Srivastava said.
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"For every iPhone sold at around USD 1,000 in the US, India's share is less than USD 30. Yet, in trade data, the full USD 7 billion export value adds to the US trade deficit," Srivastava said.
India’s role in iPhone manufacturing is primarily limited to final assembly, which involves low margins but creates employment.
......
The report breaks down the value chain of a USD 1,000 iPhone. Only USD 450 goes toward the physical device. U.S. firms like Qualcomm and Broadcom receive USD 80, Taiwan gets USD 150 for chip fabrication, South Korea earns USD 90 for OLED and memory components, and Japan contributes USD 85 for the camera. Germany, Vietnam, and Malaysia account for another USD 45. India and China receive just USD 30, which is less than 3% of the total value, despite being key locations for final assembly.
Manufacturing, although low in value addition, is significant for employment.
......
"This is precisely the segment of the supply chain Trump wants to bring back to the U.S.—not because it's high-tech, but because it delivers jobs," Srivastava said.
17-05-2025, 08:13 AM
Relocating assembly to the U.S. would sharply raise Apple’s costs. In India, the average assembly worker earns about USD 290 per month. Under U.S. minimum wage laws, this could increase to USD 2,900—a 13-fold jump. This would raise the assembly cost per iPhone from USD 30 to USD 390. Apple’s profit per device could fall from USD 450 to USD 60, unless it raises iPhone prices, potentially affecting American consumers.
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