Apple may be able to keep iPhone prices almost the same if it shifts the final step of production from China to India, according to JP Morgan. A cost breakdown showed that the iPhone would only become around 2% more expensive if it were assembled in India, which would go from $986 to $1,008. This small rise is much cheaper than the 30% jump to $1,285 if Apple manufactures iPhones in the United States.
JPMorgan says moving iPhone final assembly from China to India would lift the retail tag by a token 2% to about $1,008, far below the 30% leap to $1,285 if production were reshored to the US. pic.twitter.com/ogKYCvoypk
— Manish Singh (@refsrc) May 1, 2025
Iphone prices in India
JPMorgan’s analysis states that main components of the iPhone such as camera, screen, processor and memory cost the same whether they are made in India or China. Even the assembly prices are similar. The only difference is that supplier profit margins are a bit more in India (8% in comparison to 6%). This is the main reason behind a small increase in the overall cost, but Apple still makes the profit margin of 45%.
This means Apple could shift more production to India without needing to increase iPhone prices too much.
Apple’s India plan
According to a recent Reuters report, Apple is now planning to make most of the iPhones it sells in the US at factories in India by 2026. This is possibly because the company wants to avoid possible trade issues and higher taxes connected to China.
As per a source, ”Apple aims to make most of its iPhones sold in the United States at factories in India by the end of 2026, and is speeding up those plans to navigate potentially higher tariffs in China.”
The report also mentioned that Apple is having ”urgent talks” with its manufacturing partners, Tata and Foxconn, regarding expanding production in India.
In March, Apple exported iPhones worth $2 billion from India to the US, marking a new monthly record. Though making iPhones can cost 5-10% more than in China. The savings from lower US tariffs and lower risk may help Apple keep prices stable for customers.
