Despite Trump's 25%rate, India-made iPhones will still cost less than the US-made things: GTRI report | Mint

US President Donald Trump announced on Friday that the US is planning to impose a 25% tariff on iPhones in the country if they are manufactured in India or anywhere else in the world. Now a new report from the Global Trade Research Initiative (GTRI) has emerged that even if the US implemented such a tariff, the cost of manufacturing iPhones in India would still be much lower compared to the US devices. President Trump also revealed at the Doha Summit earlier this month that he had asked Tim Cook, CEO of Apple, to stop the iPhone meeting expansion plans and say, “I don’t want you to build in India … they can take care of themselves,” why Apple may not move the iPhone production? The GTRI report emphasizes that meeting workers in India about $ 230 a month, and compared to US states such as California, these costs could rise as high as $ 2,900, which would be an increase in the cost of 13 times. While the iPhone meeting in India costs about $ 30 for Apple, the same process in the US would cost the technical giant $ 390. In addition, Apple also receives additional benefits of the Indian government via the production -linked incentive (PLI) scheme. If Apple shifts its iPhone mounting to the US, the profit per iPhone will drop from $ 450 per unit to just $ 60, or it will be forced to significantly increase retail prices to fit the costs. How much money does India earn from the iPhone meeting? An iPhone of $ 1000 makes contributions from more than a dozen countries where Apple takes the Lions’ share of profit at $ 450, followed by its US component manufacturers such as Qualcomm and Broadcom, which amounts to about $ 80. Meanwhile, Taiwan gets about $ 150 for chip -making and South Korea earns about $ 90 for OLED screens and memory chips, while Japan contributes with camera lenses costing about $ 85. Other countries in the value supply chain such as Germany, Vietnam and Malaysia only earn about $ 45. What from India and China? Both countries earn about $ 30 per unit they make, which accounts for less than 3% of the retail value of the iPhone. Due to the iPhone meeting, India generates about 60,000 jobs, while China Aroldn generates 3,00,000 jobs.