The cost of an iPhone could triple to $3,500 if Apple is forced to shift manufacturing entirely to the United States, according to a leading technology analyst. The warning comes as President Donald Trump’s sweeping global tariffs—unveiled during his recent “Liberation Day” address—reshape the economic landscape for tech giants and consumers alike.
Tariffs Fuel Supply Chain Shock
Trump’s aggressive tariff policy, aimed at reshoring U.S. manufacturing jobs, has already sparked price hikes across key consumer categories, including electronics, automobiles, and clothing. Tech companies like Apple, heavily reliant on global supply chains—especially in China and Taiwan—are among the most exposed.
Dan Ives, global head of tech research at Wedbush Securities, warned in a CNN interview that recreating Apple’s Asian supply chain in the U.S. would be a logistical and financial nightmare, one that could take years and cost billions.
“You build that [supply chain] in the U.S. with a fab in West Virginia and New Jersey,” said Ives. “They’ll be $3,500 iPhones.”
Moving Just 10% of Production = $30 Billion
According to Ives, Apple would need around $30 billion and three years just to relocate 10% of its supply chain to U.S. soil. That’s because the high-tech fabrication and assembly ecosystems needed for iPhone production—spanning chip manufacturing, screen assembly, and component integration—are deeply entrenched in Asia, particularly in China, Taiwan, and South Korea.
While Apple has announced plans to invest $500 billion in the U.S. over four years, much of that spending is expected to focus on diversifying operations and expanding infrastructure outside China—not necessarily a full return to domestic production.
Apple’s Stock Sinks Amid Tariff Fears
Since Trump took office in January, Apple’s stock has fallen by 25%, reflecting investor concern over the company’s vulnerability to tariffs. About 90% of iPhones are assembled in China, with critical components—such as semiconductors and display panels—also sourced from Asia.
“No company is more caught up in this tariff front and center than Cupertino and Apple,” Ives said. “It’s an economic Armageddon, but especially for the tech industry.”
Analysts Predict Price Hikes Even Without Full Reshoring
Other analysts echo Ives’ concern. Rosenblatt Securities projects iPhones could become 43% more expensive if Apple passes the entire cost of tariffs on to consumers. Counterpoint Research’s Neil Shah estimates a more moderate 30% increase, depending on production locations.
Apple has already sought to diversify assembly operations to countries like India and Brazil, but capacity in those markets remains limited. India faces a 26% tariff rate, while Brazil’s is 10%—the lowest among key manufacturing hubs.
Even so, Shah notes that Brazil is unlikely to fill the volume gap left by China, meaning Apple may still face price pressure unless broader exemptions are secured.
