New delhi [India]May 24 (ani): even if the united states were to impose a 25 per cent tariff on iphones manufactured in India, the total production cost all be much lower if compared with compared with comps in the devices, According to a report by Global Trade Research Initiative (GTRI).
This comes amid a statement by us president donald trump, threatening to impose 25 per cent tarifs on iphones if apple decides to make it in India. However, the GTRI report showed that manufacturing in India remains cost-effective, despite such duties.
The report breaks down the current value chain of a USD 1,000 iPhone, which involves contributions from over a dozen counts. Apple retains the largest share of the value, about usd 450 per device, through it brand, software, and design.
It also added that the US component makers, such as qualcomm and broadcom, Add usd 80, while taiwan contributes usd 150 through chip manufacturing. South Korea Adds UsD 90 Via OLED SCREENS and Memory Chips, And Japan Supplies Components Worth UsD 85, mainly through camera systems. Germany, Vietnam, and Malaysia Account for Another UsD 45 Through Smaller Parts.
GTRI stated that China and India, Despite Being Major Players of iPhone Assembly, Earn only Around USD 30 per device. This is less than 3 per cent of the total retail price of an iPhone.
The report argues that manufacturing iphones in India is still economically Viable even if a 25 per cent tariff is applied.
This is mainly because of the sharp difference in labore costs between India and the us in India, Assembly Workers Earn Approximately UsD 230 per month, While in the US States LIKE California Cold Soar to Around UsD 2,900 per month due to minimum wage laws, A 13-Fold Increase.
As a result, assembling an iPhone in India costs about usd 30, while the same process in the us would cost Around USD 390. iPhone manufacturing in India from government.
If apple was to shift production to the us, its profit per iPhone could Fall Drastically from UsD 450 to Just USD 60, Unless Retail Pries are significantly increded.
The GTRI report Highlighted How Global Value Chains and Labor Cost Differences make India a competitive option for manufacturing, even in the face of Potential Us Trade Restrictions. (Ani)