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Despite Donald Trumps pressure Apple CEO Tim Cook has cleared that his Make in India commitment is intact. There is a reason behind his commitment - If Apple CEO Tim Cook decides to move his manufacturing unit from India to the US Apple will suffer more losses than India. However there is no big loss for India. According to GTRIs report the country may lose some low-paying jobs due to Apples manufacturing moving out of India but if we look at the overall picture there is not much loss. According to GTRI Apple currently earns US$30 on every iPhone most of which is returned to Apple as subsidies under the production-linked subsidy (PLI) scheme. Also India is reducing tariffs on key smartphone components at the request of big companies like Apple which is hurting domestic industries that are engaged in building a local manufacturing ecosystem. So even if Apple goes we do not expect any major losses. India gets less than $30 for a $1000 iPhone For every iPhone that sells for about $1000 in the US Indias share is less than $30. Yet in trade data the entire $7 billion export value adds up to the US trade deficit says Ajay Srivastava founder of GTRI. If Apple moves its manufacturing to the US India can increase its focus on new-age technologies and move beyond shallow assembly lines of smartphones. If Apples assembly moves out India will be able to stop supporting shallow assembly lines and invest in deep manufacturing - such as chips displays batteries and beyond says Srivastava. Each iPhone made in India bears the imprint of a dozen countries through its software design and brand which accounts for a large chunk of the value. A US$1000 iPhone made in India costs about US$450 with US component makers such as Qualcomm and Broadcom pocketing another US$80. Taiwan gets US$150 for chip manufacturing South Korea contributes US$90 for OLED screens and memory chips and Japan contributes US$85 for cameras. Other countries such as Germany Vietnam and Malaysia get US$45 for small parts of the iPhone. Indias share is less than 3 percent of the cost of the device India and China earn just US$30 per device as manufacturers which is less than 3 percent of the cost of the device. Manufacturing units give low returns in value but provide more employment. About 3 lakh workers in China and 60000 in India work in these units. GTRI says this is the reason Trump wants Apple to move its manufacturing to the US. 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 jobs says Srivastava. Shifting assembly units from India would create entry-level jobs in the US but production costs for Apple would increase manifold. Apple pays assembly workers an average of US$290 per month in India. Under US minimum wage laws this would increase 13 times to US$2900. The cost of assembling a device would rise from US$30 to US$390 per device. Overall Apples profit per device will drop from $450 to $60 if the company does not increase the price of iPhones. This will obviously affect American buyers. Why Apple CEO Tim Cook will incur such huge losses by manufacturing iPhones in the US is a big question and the answer is still to be found. There are many more such questions that may be answered in the future. Like why Trump did not ask Cook to shift manufacturing from China which still makes 80 to 85 percent of iPhones to India which contributes only 15 to 20 percent.