📱📈iPhone's will cost ₹3 Lakhs after Trump's request to Tim Cook?
Trump’s call to halt iPhone manufacturing in India could trigger a ₹3 lakh price tag, but Apple is unlikely to abandon its fastest-growing production hub.
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Market Watch
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ICYMI
⚠️🩸 A recent study suggests that taurine, a common energy drink ingredient, may increase the risk of blood cancer, raising health concerns.
🎾⚽ The Sports Ministry is considering allowing Overseas Citizens of India (OCI) athletes to represent India in football and tennis, potentially boosting the nation's performance in these sports.
💰🛑 Defense Minister Rajnath Singh urges the IMF to reconsider its financial assistance to Pakistan, citing concerns over potential misuse for terror activities.
🏏🤔 Gautam Gambhir held an extended meeting with India's new cricket captain to address Jasprit Bumrah's role, focusing on workload management.
📈🌍 Despite global economic challenges, India remains the fastest-growing major economy, according to a UN report.
🐦🚚 Amid India-Pakistan tensions, nine endangered Great Indian Bustards were relocated from Jaisalmer to safer areas to protect them from conflict zones.
iPhone prices to sky rocket?
Former U.S. President Donald Trump's recent remarks urging Apple CEO Tim Cook to halt iPhone manufacturing in India have raised concerns about potential price hikes for Indian consumers.
What Trump said? At a business event in Doha, Trump stated he told Tim Cook, “I don't want you building in India. You can build in India if you want to take care of India because India is one of the highest tariff nations in the world, so it is very hard to sell in India” .
Trump emphasized that “India can take care of themselves,” suggesting there was no need for Apple to establish more factories there .
The US President claimed New Delhi had offered Washington a deal with zero tariffs on US goods—though no such official announcement has been made by Indian authorities .
Trump's comments come as Apple has significantly ramped up iPhone production and exports from India as part of its strategy to diversify manufacturing away from China amid ongoing trade tensions and tariffs .
“I said Tim, we are treating you really good... We put up with all the plants you built in China for years. We are not interested in you building in India,” Trump remarked at the event .
Industry experts warn that moving iPhone production from India to the U.S. could significantly increase costs, potentially tripling the price of premium models.
📈 Potential Price Surge
Currently, Apple assembles a significant portion of its iPhones in India, benefiting from lower labor and operational costs.
Analysts estimate that assembling an iPhone in India costs around $30 per unit, whereas manufacturing in the U.S. could escalate this to approximately $390 per unit.
Such a shift could push the retail price of high-end models like the iPhone 16 Pro Max to around $3,000 (approximately ₹2.5–3 lakh), compared to the current price of about $1,000.
🔗 India's Role in Apple's Supply Chain
India has become a pivotal player in Apple's global manufacturing strategy. In 2024, iPhone exports from India reached a record $12.8 billion, marking a 42% year-on-year increase.
Tamil Nadu, in particular, has emerged as a significant manufacturing hub, producing around 70-80% of India's iPhone output through companies like Foxconn, Pegatron, and Tata Electronics.
The Indian government has downplayed Trump's comments, emphasizing the country's conducive environment for electronics manufacturing and its value to global tech giants like Apple.
Senior officials stated that Apple's investment plans in India remain intact, with the company proposing India as a major manufacturing base.
🛒 Consumer Response
Anticipating potential price hikes, Indian consumers have reportedly begun rushing to purchase current iPhone models before any increases take effect. Retailers in major cities like Mumbai, Delhi, and Bengaluru have observed a noticeable uptick in iPhone sales, with some stores experiencing stock shortages for high-end variants.
🔮 The Road Ahead
While Trump's statements have introduced uncertainty, Apple's strategic decisions will likely balance geopolitical considerations with operational efficiencies and market dynamics.
Given the significant cost implications of shifting production to the U.S., Apple is expected to continue leveraging India's manufacturing capabilities to maintain its competitive edge in global markets.
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Hi, I’m Aniket Mishra, the editor of this newsletter. I’d love to hear some feedback. WhatsApp me directly and tell me what you think.