iPhone Price May Soar To $3,500 If Made In The U.S.

President Donald Trump marked what he called “Liberation Day” by announcing a wave of aggressive tariffs on global imports, promising they would bring back American manufacturing jobs and industries. 

“Jobs and factories will come roaring back,” he said, underscoring his belief that the tariffs will revitalize domestic production.

However, as these trade measures take effect, analysts warn that the brunt of the financial impact could fall on U.S. consumers. A key concern is the potential surge in electronics prices—particularly Apple’s flagship product, the iPhone.

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Moving iPhone Production Could Cost Billions

Dan Ives, a leading technology analyst at Wedbush Securities, cast doubt on the administration’s narrative. He said the vision of a fully American-made iPhone is economically far-fetched, describing it as a “fictional tale.”

Producing iPhones in the United States would require rebuilding the highly efficient and intricate manufacturing network currently based in Asia. “You build that (supply chain) in the US with a fab in West Virginia and New Jersey. 

They’ll be $3,500 iPhones,” Ives said, referring to the costly fabrication facilities needed. He estimated Apple would have to spend roughly $30 billion and take three years just to shift 10% of its operations.

For decades, U.S. tech firms have offshored production to Asia while keeping product design and software development at home. This model has driven massive profits and turned Apple into one of the most valuable companies globally. 

Presently, around 90% of iPhones are assembled in China, with critical components manufactured in Taiwan and South Korea.

Trump’s trade policies have already had an impact. Apple’s stock has dropped nearly 25% since his inauguration, as investors grow uneasy over how tariffs might disrupt supply chains. 

“That’s why I think you see what’s happened to the stock, because no company is more caught up in this tariff front and center in this category five storm than Cupertino and Apple,” Ives noted. “It’s an economic Armageddon, but especially for the tech industry.”

Apple has pledged to invest $500 billion in U.S. initiatives over the next four years, aiming to reduce its reliance on Chinese factories. Still, research from Rosenblatt Securities suggests iPhones could be 43% more expensive if Apple passes all additional costs to customers. 

Neil Shah of Counterpoint Research said price increases could reach 30%, depending on where production is shifted—though alternative sites like Brazil may lack the capacity to fully replace China.

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