US President Donald Trump has introduced unprecedented global tariffs as part of his “Liberation Day” address. The sweeping measures could lead to steep price hikes on products like clothing and electronics, which would largely be passed down to American consumers.
A prominent tech analyst, Dan Ives, warns that the cost of an iPhone could rise to $3,500 if made in the US, due to the complexity of the production ecosystem in Asia. Replicating this system in the US would require significant investment and time, with estimates suggesting it would take Apple around three years to move just 10% of its supply chain.
Ives’ comments come as Apple’s shares have lost around 25% of their value since Trump’s inauguration due to concerns over the impact of tariffs on its supply chain. The majority of iPhones are assembled in China, and any shift away from this location would require significant changes.
Tech analysts agree that iPhone prices will likely rise, even if supply chains remain unchanged. Rosenblatt Securities estimates a 43% price increase for consumers if Apple passes on the entire cost of higher tariffs, while Neil Shah, vice president of research at Counterpoint Research, suggests an additional 30% in costs.
Source: https://edition.cnn.com/2025/04/09/tech/apple-iphones-cost-tariffs-impact-intl-hnk/index.html