Apple in America: Can Trump and the USA Afford It?

Donald Trump’s recent shoutout to Tim Cook, urging him to “build Apple in America” was a case of hurt ego. When India denied him a role in the “Talks with Pakistan,” the petulant Trump weaponized tariffs and trades. He has put Apple’s head honcho on the spot by asking when he will Make it in America!

Thereby, reigniting a decades-old debate: What if Apple made iPhones in the USA? In an age of decoupling from China and rising anti-China rhetoric, the US is trying to make an enemy of India. This is one mistake neither side can afford! The question isn’t just political – it’s economic, global, and deeply personal. If Apple exits China while not going to India, can it remain a global tech leader? Or will American-made iPhones price themselves out of the market?

The Price of “Made in USA”: Apple in China vs India

Today’s iPhone, depending on the model, retails between $799 and $1,599. But that’s with a global supply chain optimized for cost-efficiency. China’s cheap labor and manufacturing overheads are a big factor in this pricing! Here’s what changes when Apple manufacturing shifts to the US instead of India:

1. Labor Costs:

• China: Average factory worker earns $2.50/hour (2024 data).
• India: Around $1.50/hour, with improving skill bases and incentives for manufacturing.
• USA: A factory worker costs Apple $23–$32/hour, plus benefits, insurance, and strict compliance with labor laws.

2. Manufacturing Costs:

According to TechInsights and Apple’s own disclosures, the bill of materials (BOM) for an iPhone 15 Pro Max is around $500. This is mostly due to labor, chips, and assembly in China. If made in America, estimates suggest the BOM would increase to $850–$1,000. Consequently, driving the retail price of Apple iPhone 15 Pro Max above $2,000–$2,300.

3. Infrastructure and Compliance:

China’s supply chain ecosystem of Foxconn, Pegatron, and dozens of micro-suppliers are tightly interlinked. America lacks that ecosystem. Setting up fabrication units, chip production like the one TSMC is trying in Arizona will take a long time. Additionally, ensuring logistics chains in the US would cost billions. India already produces a significant portion of the global iPhones. Thus, moving the manufacturing partially or completely is a real possibility. However, moving them back home to the US is almost impossible!

4. Labor Law Impact:

American labor law demands overtime, healthcare, pensions, OSHA compliance, and environmental regulation. Contrast that with China or India – where industrial parks offer tax breaks and limited regulation, especially in SEZs. Apple in America would need to reinvent its entire operational model. The cost of every device would sky rocket.

Would the World Still Buy Apple Made in USA?

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An Apple prodyct from $2,300 to $30,000 would be out of reach for the average consumer. Here’s why that’s a problem:

• In 2025, the median annual US income is approximately $66,000. The iPhone or Apple product “Made in America” would eat up a large chunk of the pre-tax annual earnings.
• Apple thrives on global middle-class markets — from students in India to professionals in Germany. Raising prices globally due to US manufacturing would kill Apple’s competitiveness against Samsung, Xiaomi, HP, Dell, and others who continue to manufacture in Asia.

• Samsung already makes many of its phones in Vietnam and India, benefiting from low costs and a politically neutral manufacturing base.
• HP and Dell increasingly manufacture in India and Mexico – enjoying a cost flexibility. If Apple manufactures solely in the US, it will be the only major tech firm with such a disadvantage.

Can Apple Survive a Global Manufacturing Shift?

Trump’s indirect threat of closing the China door for US companies made Apple think of India. Now, Trump‘s public tantrum on being denied the role of “Peace Deal Maker” – Apple may need to rethink its strategy. However, bringing all manufacturing to the US is unlikely. Most likely it would be suicidal for a brand built on scale and margin. Tim Cook shall be “Cooked” if he bows to Trump’s pressure!

Instead, Apple is already moving toward India and Vietnam:

• India now produces 20% of all iPhones (as of April 2025). Apple aims to grow this to 25% by 2026, per JP Morgan estimates.
• Vietnam is a rising player for AirPods, iPads, and MacBooks. As of 2024, it produced 3-4% of Apple products. However, it currently lacks the skilled labor that India provides to replace China. 

Final Word:

Apple tired a pilot project of moving the Mac Pro to USA. But the repeated delays, lack of supply chains, and higher costs of production. The project was offloaded! If Apple fully “comes home,” it won’t just change its factory address – it will change its market status, its consumer base, and its price tag.

Like an “Obnoxious Phupha at an Indian Wedding“, Trump’s tantrum against India is unresonable. And it will cost Apple, a premier US brand, loss of market share and profit margins. The US regime may want a red-white-and-blue iPhone, but unless Apple’s board wants red numbers on their quarterly earnings – they’ll keep building where it makes economic sense.

Therefore, Americans could have “Made in USA” Apple devices but not without paying a price that may not be worth it.