Land in the labor cost of India and the US is a difference of osaman.
US President Donald Trump has asked Apple to stop making iPhones sold in the US market out of the US. Trump has also threatened to impose 25 percent of tariffs on the company. Trump told Apple that if the iPhones sold in America are not made in the US, then the company would be taxed at 25%. After this statement given by Trump, there is a possibility that the prices of iPhones may increase in the US very soon.
A latest report has now been revealed amid the possibility of increasing tax on iPhones. It has been told in this report that even if Trump puts 25 percent tariffs, the iPhones made in India will be much cheaper in the US market. This information was made in a report by Global Trade Research Initiative (GTRI).
Big disclosure in the report
The GTRI report states that the manufacturing of iPhones made in India will be very cheap even if extra duty is imposed on these phones. GTRI has analyzed a series of $ 1000 iPhones for its report. The margin of $ 1000 is the highest margin with the company to get $ 450.
Let us tell you that American component makers like Qualcomm and Boardcom take charge of $ 80 on every phone while Taiwan’s chip manufacture takes $ 150 for each device. South Korea takes $ 90 for its OLED screen and memory chip. Japan takes $ 85 for supply component. Apart from this, $ 45 is spent for other parts.
Land-Ocean Expenditure in Labor Cost
GTRI said in the report that even though China and India are the largest manufacture countries, they are about $ 30 at around $ 30. Meaning India and China get only 3 percent of the total price of iPhone. Based on this, the report said that even after the tariff is imposed, iPhones made in India will be very economical and cheap in the US.
Let us tell you that there is a difference of land in the labor cost in India and America. Every worker working in phone manufacturing in India is paid about $ 230. On the other hand, the labor cost in California, USA reaches around $ 2900. The US has a labor cost of about 13 times more than India. The cost of iPhone assembly in India comes to about $ 30, while in America this expenditure reaches around $ 390. In such a situation, even after 25% tax, iPhones made in India will be cheaper.
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