Key Point Summary – 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
• Apple’s stock has dropped 14% since Trump’s tariffs began
• iPhones are now being routed through India to avoid Chinese tariffs

Trump’s Tariff Push May Make iPhones Skyrocket

The iPhone could cost $3,500 if it’s made in the United States — and that’s not a hypothetical. That’s 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. “If that is not the case,” he warned, “a Tariff of at least 25% must be paid by Apple to the U.S.”

Analyst: U.S.-Made iPhones Would Be ‘Economic Armageddon’

According to Wedbush analyst Dan Ives, Apple’s move to make iPhones in America would come with a huge price tag. “You build that supply chain in the U.S. — they’ll be $3,500 iPhones,” 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.

Apple’s 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 Trump’s tariffs—originally designed to punish China—are now targeting Apple’s 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. Trump’s new rules threaten a 25% tariff on any iPhones made outside the country.

If that hits, it could add $900 million to Apple’s costs, just for one quarter.

What’s Next For Apple And Consumers?

Apple’s stock has dropped more than 14% since Trump’s trade war escalated. Investors are spooked. Consumers could be next. If Apple can’t absorb the costs, users may foot the bill.

Gene Munster of Deepwater Asset Management warned: “At some point, they’re going to have to start to share it.”

iPhone could cost $3500. That’s the future if tariffs stay, and Apple’s production heads home.