Even if apple moves manufacturing to us, India will not lose much: Global Trade Research Initiative – Amar Ujala Hindi News Live

According to GTRI, currently earns US $ 30 on every iPhone, most of which is given back to Apple as a subsidy under the production subsidy (PLI) scheme. At the same time, India is reducing tariffs on major smartphone components at the request of big companies like Apple, causing damage to the domestic industry that are engaged in creating local manufacturing ecosystems. In such a situation, even if Apple goes, we do not have any possibility of any major loss.

India gets less than $ 30 in $ 1000 iPhone

GTRI founder Ajay Srivastava says, “India’s stake in every iPhone sold for about US $ 1,000 in the US is less than US $ 30. Nevertheless, in trade data, the entire $ 7 billion export price is added to the US trade deficit.” If Apple takes its manufacturing to America, India can raise its focus on new era techniques and can move beyond the shallow assembly lines of the smartphone.

Also read: Apple: ‘In every five, an iPhone is made in India’, what is the effect of Trump’s confusion between tariff war? Learn

Srivastava says, “If Apple’s assembly goes out, India will stop supporting shallow assembly lines and intense manufacturing- such as chips, displays, batteries and beyond areas.” Each iPhone manufactured in India has a dozen countries imprint through its software, design and brand, which is a large part of the value. The iPhone manufactured in India of US $ 1000 is priced at around US $ 450, with US constituent manufacturers such as Qualcomm and Broadcom.

Taiwan gets US $ 150 for chip manufacturing, South Korea contributes 90 US dollars for OLED screens and memory chips and $ 85 for Japan camera. Other countries like Germany, Vietnam and Malaysia get US $ 45 for small parts of the iPhone.

India’s share is less than 3 percent of the cost of the device

India and China get only US $ 30 per device as a manufacturer, which is less than 3 percent of the cost of the device. Manufacturing units give low returns in value, but this gives people more employment. About 3 lakh employees in China and 60,000 employees in India work in these units. GTRI says that this is why Trump wants Apple to transfer himself to America.

Workers will have to pay 13 times more on making phones in America

Srivastava says, “This is the part of the supply chain that Trump wants to bring back to the US. Not because it is high -tech, but because it provides employment.” Transferring assembly units from India will create entry level jobs to the US, but the production cost for Apple will increase manifold. The Apple Assembly in India pays an average of US $ 290 per month. It will increase by 13 times to US $ 2900 under US minimum wage laws. The cost of assembling a device will increase from US $ 30 to US $ 390 per device.

Also read: Trade Deficit: The country’s exports increased 9% in April; 19% increase in imports, trade deficit increased by $ 26.42 billion

Overall, the profit of Apple per device will decrease from US $ 450 to US $ 60 if the company does not increase the price of the iPhone. Apparently this will affect American buyers. Apple CEO Tim Cook Why will you do such a big harm by making an iPhone in America is a big question, and the answer is still yet to be found. There are many other questions that can be answered in the future. For example, why Trump did not ask Cook to transfer manufacture from China, which still makes 80 to 85 percent iPhones, India contributes only 15 to 20 percent.