American iPhone May Cost 3X More Under Tariffs
The dream of a “Made in USA” iPhone could soon become an expensive reality for American consumers. Following the implementation of President Donald Trump’s 145% tariff on Chinese imports, Apple faces unprecedented pressure to relocate its manufacturing operations from China to the United States.
While the White House has expressed confidence that Apple could shift production domestically, industry analysts paint a dramatically different picture – one where American consumers would pay significantly higher prices for their beloved devices.
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Sticker Shock: The Cost of Going American
Analysts disagree on exactly how much more expensive an American-made iPhone would be, but they all agree on one thing – it would cost substantially more. Wedbush’s Dan Ives estimates that a US-manufactured iPhone could retail for as much as $3,500, nearly triple the current price of premium models, according to The Guardian.
Bank of America Securities analyst Wamsi Mohan offers a somewhat more conservative estimate, suggesting that labor costs alone would drive a 25% price increase on the iPhone 16 Pro, currently priced at $1,199. That would push the device to approximately $1,500, CNBC reports.
UBS analysts warn that with the full 145% tariff applied, an iPhone 16 Pro Max could jump from $1,199 to approximately $2,150 – a staggering 79% increase that would substantially impact consumer purchasing decisions.
What if iphone made 100% in the USA? Add usd400-600 to existing price pic.twitter.com/KKCgOhnqJO
— ZaYeD ZulFikLi (@ZZulfikli) April 9, 2025
A Manufacturing Mountain to Climb
Apple currently produces more than 80% of its products in China, relying on a massive, specialized workforce that would be difficult to replicate in the United States. Apple CEO Tim Cook previously highlighted this challenge, noting that a meeting of tooling engineers in China could “fill multiple football fields,” while in the U.S., “it would be hard to fill one,” according to CNBC.
Commerce Secretary Howard Lutnick has suggested that “the army of millions and millions of human beings screwing in little screws to make iPhones” could come to America. However, industry experts remain highly skeptical about this possibility.
Professor Fraser Johnson, an Apple supply chain expert at Ivey Business School, told The Guardian that “the US economy is not set up to be able to assemble mobile phones. They don’t have the facilities or the flexible labour. To train 200,000-300,000 people to come in and assemble iPhones is simply not practical.”
History of Failed Domestic Manufacturing
This isn’t the first attempt to bring iPhone manufacturing to American shores. When President Barack Obama asked Apple co-founder Steve Jobs about making iPhones in the U.S., Jobs replied bluntly: “Those jobs aren’t coming back.”
More recently, Foxconn’s high-profile 2017 plan to build manufacturing facilities in Wisconsin ended in disappointment. Despite promises of 13,000 jobs and $10 billion in investment, the project created only 1,454 jobs and pivoted to producing face masks during the pandemic rather than electronics, CNBC notes.
Apple’s Global Supply Web
Beyond assembly, an iPhone contains more than 1,000 components sourced globally. The processor comes from Taiwan, displays from South Korea, and countless other parts from China and other countries.
This complex supply chain makes complete domestic production nearly impossible in the short term. Dan Ives estimates it would take “three years and $30 billion” to move just 10% of Apple’s supply chain from Asia to the U.S., creating “major disruption in the process.”
Searching for Solutions
With tariffs now in effect, Apple appears to be pursuing multiple strategies. Reuters reports that Apple has chartered cargo flights to transport approximately 600 tonnes of iPhones (equivalent to 1.5 million devices) from its production facilities in India to the United States.
The company may also seek exemptions from the tariffs, as it successfully did during Trump’s first term. Apple has announced plans to invest $500 billion in the United States, including AI server production in Houston, which Trump has publicly praised.
As American consumers brace for potential price increases, the future of one of America’s most iconic products hangs in the balance between global economic realities and domestic political pressure.
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