By Erick 
Earlier this year Apple announced that starting 2026 all US-sold iPhones will be made in India. Yay.
Then yesterday (as on date of publishing this post) US President Donald Trump said he told Tim Cook he didn’t want Apple building “all over India”. Boo.
Just a few hours after that, Apple assured the Indian Government that they will keep moving ahead with building in India. Yay.
This might go on for a while between the US President and the Apple CEO. Ultimately, I think Apple will prevail and move ahead with its plans to shift a chunk of its manufacturing to India, tariffs notwithstanding. There are many reasons for why I think so:
- Concentration risk – Apple can’t have all or even most of its global manufacturing in one place
- India has the concentration of technical skill in one place to match China, in a way that Tim Cook describes in this video.
Also why I think Apple will prevail is, well, Apple brings in money. Although recently it got some fines and rulings against its favor, Apple and the iPhone is still too big to fail and too close to Apple’s – and for that matter the United States’ – strategy to maintain global hardware dominance.
So with more iPhones being made in India, one begs the question – how much would a completely ‘made in India’ iPhone cost?
Let’s dig in.
Full disclosure – the section I marked out below is generated using DeepSeek, with no editing from me. I take responsibility for the information pasted here. In fact I had asked Perplexity, Gemini and others the same question, and found DeepSeek to be the most comprehensive and to the point. Maybe because their data crawling practices are a little more…. loose? Anyway, another disclosure is that this is NOT an endorsement for DeepSeek or any of the other AI tools.
– Start of DeepSeek Output –
To estimate the cost of manufacturing the iPhone 16 Pro Max in Sriperumbudur, India, we break down the expenses into components, delivery, labor, and shipping. Assumptions are based on comparable iPhone 15 Pro Max teardowns, market data, and logistics estimates. Note that exact figures for unreleased models are proprietary, so approximations are used.
1. Component Costs (Bill of Materials – BOM)
Based on iPhone 15 Pro Max teardowns (TechInsights, 2023) and adjusted for inflation/new features:
| Component | Estimated Cost (USD) |
|---|---|
| OLED Display (Samsung/LG) | $120–$150 |
| A18 Pro Chip (TSMC 3nm) | $90–$110 |
| 5G Modem (Qualcomm) | $40–$50 |
| Cameras (Sony sensors + LiDAR) | $60–$80 |
| Battery & Power Management | $10–$15 |
| Titanium Chassis | $40–$50 |
| DRAM (8GB LPDDR5) | $30–$40 |
| NAND Storage (1TB) | $50–$70 |
| Sensors (Face ID, Gyro, etc.) | $30–$40 |
| PCB, Connectors, Misc. | $50–$70 |
| Total BOM | $550–$650 |
2. Delivery to Sriperumbudur
Costs to transport components globally (air/sea freight) and import duties:
- Freight: ~$10–$15 per unit (bulk air/sea for high-value components).
- Import Duties: India levies 10–20% on electronics components. Assuming Apple qualifies for partial PLI scheme exemptions, duties could average $50–$70 per unit.
| Category | Estimated Cost (USD) |
|---|---|
| Freight | $10–$15 |
| Import Duties/Tariffs | $50–$70 |
| Total Delivery | $60–$85 |
3. Labor Costs
Assembly in India is cheaper than China. Foxconn’s Sriperumbudur facility reportedly pays $2.50–$3.50/hour.
- Time per Unit: ~20–30 minutes of labor per iPhone.
- Cost per Unit: ~$1.50–$3.00 (direct labor).
- Overhead/QA: Additional $5–$10 per unit (facilities, testing, etc.).
| Category | Estimated Cost (USD) |
|---|---|
| Direct Labor | $1.50–$3.00 |
| Overhead | $5–$10 |
| Total Labor | $6.50–$13.00 |
4. Domestic Shipping (to Rest of India)
Post-assembly logistics via truck/rail:
- Per Unit Cost: ~$2–$5 (distance-dependent).
| Category | Estimated Cost (USD) |
|---|---|
| Domestic Shipping | $2–$5 |
Total Estimated Manufacturing Cost
| Category | Estimated Cost (USD) |
|---|---|
| Components (BOM) | $550–$650 |
| Delivery | $60–$85 |
| Labor | $6.50–$13.00 |
| Domestic Shipping | $2–$5 |
| Grand Total | $618–$753 |
Key Notes & Assumptions
- Component Pricing: Reflects 2023–2024 market rates for similar flagship phone parts.
- Import Duties: Assumes partial PLI scheme benefits. Without exemptions, add ~$80–$100.
- Labor: Excludes R&D, software, or Apple’s profit margin (~40–50% markup on BOM).
- Economies of Scale: Bulk production could reduce per-unit costs by 5–10%.
Reliability of Estimates
- Teardown Data: iFixit/TechInsights historically provide accurate BOM breakdowns.
- Logistics: Freight rates from Flexport/industry reports.
- Labor: Wage data from Indian government/Foxconn disclosures.
This estimate excludes marketing, software, licensing, and corporate expenses. Actual costs may vary based on Apple’s supply chain negotiations and localization efforts in India.
– End of DeepSeek Output –
So in today’s rate and exchange rate, it would cost anywhere between ₹52,000/- and ₹64,000/- to manufacture and ship the 256 GB iPhone 16 Pro Max, particularly out of Sriperambudur.
And it costs ₹1,44,900/- on Apple. But let’s remember that the estimate above is only manufacturing and shipping, it doesn’t include factoring in Apple’s corporate costs – marketing, personnel, etc. etc.
So now the next question is, will the made in India iPhone – if it is sold in India – be cheaper for Indian consumers?
Logically it should be. If it is made and sold in India, there is no question of tariffs and customs. But I wouldn’t be so sure yet – a lot depends on the Indian Finance Ministry (a.k.a. Nirmala Aunty) and the budget for next year. Still, one can dream.