iPhones will rise in price to $3,500 if they start being manufactured in the USA - CNN
Kyiv • UNN
Moving iPhone production to the US will triple its cost due to labor costs and the reproduction of the production ecosystem. Apple shares fell due to concerns about duties.
iPhone prices, if their production is moved to the United States under pressure from US President Donald Trump's tariffs, will more than triple. The reason is not only more expensive labor, but also the fact that Apple will need to recreate from scratch the extremely complex high-tech production ecosystem that currently exists in Asia. This is reported by UNN with reference to CNN, the publication Bloomberg.
Details
Bloomberg reports that according to Bank of America, Apple Inc. may move iPhone production to the United States, but this will almost double the cost of manufacturing the device and create logistical problems.
The cost of the iPhone may increase by 25% solely due to the increase in labor costs in the United States
It is noted that the head of the White House and his economic officials promised that as a result of the introduction of duties, numerous jobs in the manufacturing industry will eventually be "transferred" to the United States of America. This will provide jobs for millions of Americans.
However, Dan Ives, head of technology research at Wedbush Securities, said in an interview with CNN that this idea is a "fabricated story." He added that the cost of iPhones manufactured in the US could triple the current price of around $1,000, as it would require recreating the extremely complex production ecosystem that exists in Asia.
You're building this (supply chain) in the US with a factory in West Virginia and New Jersey. These will be $3,500 iPhones
"And even in this case, it will cost Apple about $30 billion and three years to move at least 10% of its supply chain to the US," added Dan Ives.
Let us remind you
On April 02, 2025, US President announced the introduction of new duties for certain countries. In particular, China - 34%, the European Union and Great Britain - 20%.
Apple promptly sent a batch of equipment from India to the USA to avoid new customs restrictions. Five cargo planes delivered smartphones and devices.
Apple Inc. shares fell to their lowest level since May 2024 due to concerns about US and Chinese tariffs. Apple's market capitalization decreased to $2.59 trillion.
Donald Trump called on foreign companies to move their business to the USA, promising zero tariffs, quick connection to power grids, permits and no environmental delays. Trump also reminded about duties for other countries.