iPhone Prices Could Soar to $3,500 If Made in U.S., Analyst Warns

Apple’s iPhone could become drastically more expensive – potentially tripling in price – if former President Donald Trump’s latest trade policy proposals are implemented, a leading tech analyst has warned.

Trump, in a Truth Social post on Friday, reiterated his demand that iPhones sold in the U.S. be manufactured domestically rather than overseas, threatening a 25% tariff on Apple if production remains abroad. “I have long ago informed Tim Cook… that I expect their iPhones… to be manufactured and built in the United States,” Trump wrote.

However, Wedbush Securities’ Dan Ives says the idea of fully U.S.-made iPhones is economically unfeasible in the near term. Speaking to CNN, Ives estimated that building iPhones in the U.S. could drive their price up to $3,500 – more than three times the current retail price – due to the astronomical costs of replicating Apple’s global supply chain in America.

“You build that supply chain in the U.S., with fabs in West Virginia and New Jersey, and you’re looking at $3,500 iPhones,” Ives said, referring to the specialized facilities used to manufacture the chips that power smartphones.

Ives added that even shifting just 10% of Apple’s production to the U.S. could cost the company roughly $30 billion and take at least three years.

The production and assembly of iPhones are currently heavily reliant on a well-established manufacturing ecosystem in Asia. Core components such as chips are produced in Taiwan, screens come from South Korea, and final assembly is done primarily in China, which still handles about 90% of Apple’s iPhone manufacturing.

Trump’s trade war, revived under his “Liberation Day” speech last month, has reignited market fears. Since his inauguration in January, Apple shares have fallen more than 14%, largely due to concerns over tariff-related disruptions to its global supply chain.

While smartphones were initially spared from earlier rounds of tariffs, Apple now faces additional levies, including a 20% tariff on Chinese goods due to the country’s alleged role in the fentanyl crisis. Apple CEO Tim Cook has acknowledged that such tariffs could add $900 million to the company’s costs this quarter alone.

To mitigate the impact, Apple has been accelerating efforts to diversify its production away from China, with growing investments in India and Brazil. Cook noted on the company’s last earnings call that a majority of U.S.-bound iPhones will now be shipped from India.

In February, Apple pledged to invest $500 billion in the U.S. over the next four years, but analysts warn this won’t be enough to avoid price hikes if severe tariffs are imposed. Gene Munster of Deepwater Asset Management said Apple could absorb some costs if tariffs stay under 30%, but beyond that, consumers are likely to feel the pinch.

“At some point, they’re going to have to start to share it,” Munster said.

For now, the iPhone’s future price tag – and where it’s built – may ultimately hinge on the outcome of political negotiations and global economic strategy.