New Delhi— A fully American-made iPhone could carry a staggering price tag of up to $3,500 (over ₹2.98 lakh) due to the lack of a fully integrated supply chain in the United States, according to top technology analysts.
Dan Ives, global head of technology research at Wedbush Securities, told CNN that the idea of manufacturing iPhones entirely within the U.S. is a “fictional tale,” emphasizing that replicating Apple’s intricate and highly optimized Asian supply chain domestically would drastically inflate production costs.
“You build that supply chain in the U.S. with a fab in West Virginia and New Jersey, and you’ll end up with $3,500 iPhones,” Ives said.
Market observers estimate that it would take Apple at least three years and around $30 billion in investment to shift just 10 percent of its supply chain operations to the U.S.
In contrast, India has emerged as a strategic manufacturing base for Apple. During the company’s recent earnings call, CEO Tim Cook noted that the majority of iPhones shipped to the U.S. for the June quarter will soon be sourced from India.
Amid rising geopolitical tensions and trade threats — including former U.S. President Donald Trump’s call for a 50 percent tax on EU imports and a 25 percent tariff on Apple products not made in the U.S. — India’s appeal has only grown stronger.
Sources familiar with Apple’s plans say the company remains committed to its investment in India and continues to view the country as a cornerstone of its global manufacturing strategy under the ‘Make in India’ initiative.
“India has proven its value in Apple’s supply chain, not just for its domestic market potential but for its export capacity and supportive policy environment,” said Prabhu Ram, Vice President at CyberMedia Research (CMR).
According to an IDC report, Apple saw the highest year-on-year growth among India’s top five smartphone brands during the January-March quarter, shipping a record three million units — its best first-quarter performance ever in India. The iPhone 16 was the top-shipped model, accounting for 4 percent of all smartphones sold in Q1 2025.
India’s growing role in Apple’s global operations highlights a broader shift in the tech industry, as manufacturers seek diversified, cost-effective, and politically stable alternatives to traditional production hubs. (Source: IANS)
