Key Point Summary โ iPhone could cost $3500
- Trump demands that Apple manufacture iPhones in the U.S.
- Analyst warns iPhone could cost $3,500 under domestic production
- Apple would need $30B and 3 years to shift just 10% of its supply chain
- Appleโs stock has dropped 14% since Trumpโs tariffs began
- iPhones are now being routed through India to avoid Chinese tariffs
Trumpโs Tariff Push May Make iPhones Skyrocket
The iPhone could cost $3,500 if itโs made in the United States โ and thatโs not a hypothetical. Thatโs the warning from analysts after President Donald Trump doubled down on his push to force Apple to build its flagship product domestically.
Trump took to Truth Social, demanding Apple relocate its iPhone production out of India and China. โIf that is not the case,โ he warned, โa Tariff of at least 25% must be paid by Apple to the U.S.โ
Analyst: U.S.-Made iPhones Would Be โEconomic Armageddonโ
According to Wedbush analyst Dan Ives, Appleโs move to make iPhones in America would come with a huge price tag. โYou build that supply chain in the U.S. โ theyโll be $3,500 iPhones,โ he told CNN.
Building the complex fabrication and assembly operations stateside would cost Apple about $30 billion just to move 10% of their supply chain. And even then, it would take at least three years.
Appleโs Global Supply Chain Is Hard To Replace
Currently, about 90% of iPhones are assembled in China. Key components like chips come from Taiwan, while screens are sourced from South Korea. For decades, Apple has relied on this system to deliver high-margin devices at scale.
But Trumpโs tariffsโoriginally designed to punish Chinaโare now targeting Appleโs production model. The result? Analysts say the iPhone could cost $3500 if made in the U.S.
Apple Already Shifting To India
To minimize exposure, CEO Tim Cook revealed Apple is rerouting most iPhones for U.S. sales from India. Still, that may not be enough. Trumpโs new rules threaten a 25% tariff on any iPhones made outside the country.
If that hits, it could add $900 million to Appleโs costs, just for one quarter.
Whatโs Next For Apple And Consumers?
Appleโs stock has dropped more than 14% since Trumpโs trade war escalated. Investors are spooked. Consumers could be next. If Apple canโt absorb the costs, users may foot the bill.
Gene Munster of Deepwater Asset Management warned: โAt some point, theyโre going to have to start to share it.โ
iPhone could cost $3500. Thatโs the future if tariffs stay, and Appleโs production heads home.
