iPhone prices could triple if made in the US

In a speech dubbed “Liberation Day,” US President Donald Trump confidently declared that “jobs and factories will come roaring back” thanks to an unprecedented global tariff policy.

Behind that promising statement, however, lies a complex reality: American consumers may be paying more than ever for everything from clothing to consumer goods to electronics.

One typical example is the iPhone, Apple's iconic product. According to Dan Ives - Director of global technology research at Wedbush Securities (USA), if Apple produced the iPhone entirely in the US, the price of one could increase to $3,500, three times the current price.

In an interview with CNN, Dan Ives frankly stated that reshoring production chains is a “science fiction” because the extremely sophisticated and widespread supply chains in Asia cannot be easily replicated in the US.

“You can’t just build a factory in West Virginia or New Jersey. The high-tech ecosystem needs more than that, and the price tag is going to be huge,” Mr. Ives said.

Not only that, Ives said, even if Apple tried to move just 10% of its supply chain to the US, it would still cost the company up to $30 billion and take at least three years to prepare.

While the Trump administration claims tariffs will bring jobs back to the United States, many experts say consumers will be most directly affected, not only by higher prices, but also by disruptions in global supply chains.

The production and assembly of smartphone parts shifted to Asia decades ago, when US companies focused primarily on software development and product design, generating much higher profit margins.

That move helped make Apple one of the world's most valuable companies and cemented its position as the dominant smartphone maker.

Since Trump took office in late January, Apple shares have lost about 25% of their value on concerns about the impact of tariffs on the company's vast supply chain, which relies heavily on China and Taiwan. About 90% of iPhones are assembled in China.

“That’s why I think you’ve seen what’s happened to stocks, because there’s no company more caught in the crossfire of this tariff war than Apple,” said Dan Ives. “This is an economic apocalypse, but especially for the tech industry.”

The semiconductor chips that power the iPhone are mainly made in Taiwan, while display panels are supplied by South Korean companies. Some other components are made in China, and final assembly is largely done there.

In February, Apple announced it would invest $500 billion in the US over the next four years as part of an effort to expand manufacturing outside China and avoid Trump's tariffs on the country.

Tech analysts agree that iPhone prices are likely to rise, even if the supply chain remains the same. Rosenblatt Securities, a New York-based investment bank, said iPhones could become 43% more expensive if Apple passes the full cost of higher tariffs on to consumers.

According to Neil Shah - Vice President of Research at research firm Counterpoint Research (Hong Kong), iPhone prices could increase by about 30% if produced in the US, however, this increase depends on where Apple decides to locate the factory.

In an effort to reduce its reliance on China, Apple has begun moving some of its production to India and Brazil, countries that have lower tariffs when exporting to the US.

Shah analyzed that India is currently subject to a tax rate of about 26%, while Brazil is only about 10%, the lowest among the major iPhone manufacturing countries.

However, he stressed that while Brazil has tax advantages, its manufacturing capacity is not yet large enough to replace China's huge role in Apple's supply chain.

Therefore, if Apple is forced to leave China completely without an effective alternative destination, consumers could face skyrocketing iPhone prices in the near future.