US President Donald Trump has suggested that tech giant Apple should manufacture its signature iPhone in the US to avoid new tariffs. However, experts say this is highly unlikely due to significant cost increases.
Needham analyst Laura Martin told CNBC that if Apple were to start building its iPhones in the US, costs would skyrocket, making it impossible for the company to operate profitably. She estimated that the cost of producing an iPhone in the US could be as high as $3,500.
Martin also stated that the process of moving Apple’s supply chain to the US would take years and is not feasible due to logistical challenges. Most experts agree that making iPhones completely in the US is impossible.
The White House Press Secretary, Karoline Leavitt, has defended Trump’s plan, stating that the US has the workforce and resources to make smartphones domestically. However, analysts remain skeptical, citing the significant costs and logistical hurdles involved.
As investors dump Apple shares due to its manufacturing exposure to China, which faces a cumulative tariff rate of 104%, Martin warned that Trump’s tariffs will push costs for Apple about 50% higher.
Apple stock has plummeted nearly 2% in Tuesday’s session, with many analysts advising traders to take a pause before buying the dip. The uncertainty around trade policy and its impact on earnings estimates remains a significant concern for investors.
Source: https://www.cnbc.com/2025/04/08/tech-analyst-responds-to-trump-wanting-apple-to-make-iphones-in-us-i-dont-think-thats-a-thing.html