Can Apple Really Make iPhones in the U.S.? Analysts Say It’s a $3,500 Pipe Dream

Trump wants iPhones stamped "Made in America." Wall Street says it’s a fantasy that could cost consumers $3,500 per phone. As Apple’s stock tumbles amid fears of Trump’s escalating tariffs, analysts warn that relocating iPhone production to the U.S. would trigger logistical chaos, price hikes, and years of supply chain headaches. Is this political posturing or a plausible path forward? Let’s dive in.

📉 The $3,500 iPhone Problem: Why U.S. Manufacturing Isn’t Happening

• Cost Explosion: Wedbush estimates producing iPhones domestically would spike prices to $3,500—nearly double today’s iPhone 16 Pro Max ($1,199). Needham’s Laura Martin warns Apple’s costs could rise 50% under Trump’s tariffs.
• Supply Chain Nightmare: Relocating factories from China would take 3-5 years, says Martin. Even then, experts say full U.S. production is impossible due to reliance on global semiconductor and rare earth mineral networks.
• Stock Meltdown: Apple shares plunged 20% in five days as tariffs hit China (104% cumulative rate), India, and Vietnam—key manufacturing hubs.

✅ Trump’s Argument: "We Have the Workforce"

White House Press Secretary Karoline Leavitt insists America can deliver:

• ✅ Points to Apple’s $500B U.S. investments as proof of capability
• ✅ Claims domestic labor and resources are sufficient

But analysts counter that assembly is just 5-7% of iPhone costs. Critical components like chips (TSMC) and displays (Samsung) remain overseas.

🚧 Four Roadblocks to "Made in USA" iPhones

1. ⚡ Manufacturing Reality Check: iPhones require 1,000+ components from 43 countries. Replicating this ecosystem stateside? Martin calls it "impossible."
2. 💸 Inflation Time Bomb: UBS warns tariffs could add $350 to iPhone prices. Martin fears this would spike CPI, complicating Fed rate cuts.
3. ⏳ Geopolitical Gambles: China could retaliate by restricting rare earth exports (used in cameras/speakers) or invading Taiwan (home to chip giant TSMC).
4. 📉 Investor Panic: With 19% of Apple’s revenue from China, tariffs risk both supply chains and sales in its second-largest market.

📈 Final Thoughts: A Lose-Lose Scenario?

Unless Trump walks back tariffs, Apple faces:

• ✅📉 Absorb costs → Margins collapse
• ✅📉 Raise prices → Sales plummet

Martin advises investors to avoid buying the dip until earnings estimates reflect tariff impacts. With 60% of iPhones made in China, there’s no quick fix. As one supply chain expert told me: "This isn’t 1950s car manufacturing. You can’t reshore a device that relies on 8 countries just for its screws."

What do you think? Should Apple bite the bullet on tariffs—or is a $3,500 iPhone political suicide for any administration?

Let us know on X (Former Twitter)

Sources: Alex Harring. Tech analyst responds to Trump wanting Apple to make iPhones in U.S.: ‘I don’t think that’s a thing’, April 9, 2025. https://www.cnbc.com/2025/04/08/tech-analyst-responds-to-trump-wanting-apple-to-make-iphones-in-us-i-dont-think-thats-a-thing.html