iPhone Prices Could Triple to $3,500 If Manufacturing Moves to U.S., Analyst Warns
Amid escalating trade tensions and new tariff policies championed by former U.S. President Donald Trump, a leading tech analyst has warned that the cost of an iPhone could skyrocket to $3,500 if Apple were forced to relocate its manufacturing operations from Asia to the United States.
Speaking with CNN’s Erin Burnett, Dan Ives of Wedbush Securities described the idea of reshoring iPhone production to the U.S. as economically unrealistic, pointing out the immense cost and time it would take to replicate Asia’s intricate supply chain network.
“You try building that supply chain in West Virginia or New Jersey with fabrication plants—those iPhones are going to cost $3,500,” Ives said, emphasizing that Apple would need at least three years and $30 billion just to move 10% of its production back to the U.S.
Since the implementation of Trump’s global tariffs, the administration has promised a surge in domestic manufacturing and job creation. However, industry experts like Ives argue that such promises don’t align with the realities of the tech supply chain, especially for a product as complex as the iPhone.
Nearly 90% of iPhones are currently assembled in China, with components sourced from a variety of countries. Chips are largely manufactured in Taiwan, display panels come from South Korea, and several other parts originate from Chinese factories.
As a result of these dependencies, Apple has been heavily exposed to tariff impacts, and its stock has reflected investor unease. Since Trump took office, Apple shares have seen significant declines amid fears over disruptions to its global production model.
Apple has responded by pledging to invest $500 billion in the U.S. over four years and has begun exploring alternative manufacturing hubs in countries like India and Brazil. However, these locations face their own tariff challenges and may lack the infrastructure to handle large-scale production in the near term.
Analysts from Rosenblatt Securities estimate iPhones could see a price hike of up to 43% if Apple passes the full tariff burden on to consumers. Meanwhile, Counterpoint Research’s Neil Shah predicts a more conservative 30% increase, depending on where production shifts.
While the company continues to diversify its supply chain, the potential for massive price hikes underscores how deeply global trade policies can ripple through the consumer tech market.
