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

Trump Wants iPhones Made in America—But Experts Warn It’s a Costly Fantasy
President Donald Trump’s recent push for Apple to shift iPhone production to the U.S. has sparked fierce debate. But analysts like Needham’s Laura Martin are pushing back, warning that the idea is economically unfeasible. With Apple’s stock plummeting and tariffs threatening to inflate prices, could this proposal backfire? Let’s dive in.

📉 The Cost Problem: Why U.S. Manufacturing Isn’t Viable

• Skyrocketing Prices: Wedbush analyst Dan Ives estimates a U.S.-made iPhone could cost $3,500—nearly double today’s premium models.
• Tariff Tsunami: Trump’s proposed tariffs on China, India, and Vietnam could raise Apple’s costs by 50%, according to Martin.
• Stock Meltdown: Apple shares have plunged 20% in five days as investors panic over tariff impacts.
• Supply Chain Reality: Experts say relocating iPhone production would take years—and even then, full U.S. manufacturing is "impossible."

✅ The Proposed Solution: Trump’s Vision vs. Reality

Trump’s team argues the U.S. has the workforce and resources to make iPhones domestically, citing Apple’s $500 billion in U.S. investments. But analysts aren’t convinced:

• ✅ Labor Myth: While the U.S. has technical talent, it lacks the massive low-cost labor pool required for high-volume assembly.
• ✅ Infrastructure Gaps: China’s specialized supply chain—from rare earth minerals to microfactories—can’t be replicated overnight.
• ✅ Timing Trouble: Even if Apple started today, Martin says reshoring would take years—far too slow to avoid tariff pain.

🚧 The Roadblocks: Why This Plan Could Crash

• ⚠️ Inflation Spiral: UBS warns iPhone 16 Pro Max prices could jump $350 if tariffs hit, worsening consumer inflation.
• ⚠️ Geopolitical Risks: Martin flags potential disasters like a Chinese invasion of Taiwan, which would cripple Apple’s Asian supply chain.
• ⚠️ Investor Flight: With earnings estimates still unadjusted for tariffs, Martin cautions: "There’s lots of worst cases for Apple."

📉 Final Thoughts: A High-Stakes Gamble

While Trump’s vision taps into patriotic sentiment, the numbers tell a different story. Success would require:

• 🚀 Supply Chain Overhaul: Building new factories and training workers—a decade-long process.
• 🚀 Consumer Sacrifice: Americans paying premium prices for devices currently reliant on globalized production.
• 🚀 Diplomatic Miracles: Avoiding retaliatory moves from China or other manufacturing hubs.

As Apple’s stock wobbles and analysts sound alarms, one question remains: Is reshoring iPhones a bold vision—or an economic fantasy? What do you think?

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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