Apple iPhone Manufacturing Shift to US Risks $3,500 Cost Surge

Analysts, including Dan Ives of Wedbush Securities, warn that producing iPhones entirely in the U.S. without the current Asian supply chain would cause prices to soar to around $3,500, over three times the current cost. Building a comparable supply chain domestically would require Apple to invest about $30 billion and take at least three years to shift just 10% of its supply chain to the U.S. President Donald Trump has threatened tariffs of up to 25% on Apple products unless iPhones are made in the U.S., aiming to bring manufacturing jobs back to the country. However, experts describe the idea of fully domestic production as a "fictional tale," citing the complexity and cost of replicating the Asian manufacturing ecosystem where nearly 90% of Apple's production currently takes place. Apple has instead expanded manufacturing in India, with CEO Tim Cook noting that a majority of iPhones shipped to the U.S. will soon come from there, as part of the 'Make in India' initiative. The potential tariffs and reshoring demands have contributed to concerns about Apple's supply chain and stock value.