Experts Say Trump's Call for US-Made iPhones Could Triple Prices

President Donald Trump has expressed confidence that Apple can manufacture iPhones and other devices within the United States, amidst escalating US-China trade tensions. However, technology experts quickly challenged this assertion, suggesting that a "Made in USA" iPhone could cost consumers approximately $3,500—nearly triple the current price.

During a recent press briefing, White House Press Secretary Karoline Leavitt affirmed President Trump's belief in America's manufacturing potential. "He believes we have the workforce, we have the human resources, we have the resources to do it," Leavitt stated. She also referenced Apple's $500 billion investment in the United States announced earlier this year, adding, "If Apple didn't think America could do it, they probably wouldn't have committed such a significant amount of money."

These statements come as President Trump plans to implement high tariffs on goods from China, Vietnam, Thailand, India, the European Union, and other countries starting April 9. Trump has declared that if companies like Apple wish to avoid these tariffs, they should relocate their manufacturing operations to the United States. However, despite the President's proposal that Apple could shift its incredibly complex supply chain to American soil, experts consider this virtually impossible to implement.

Experts Warn of Triple Price Increase

Beyond the enormous costs involved in such a transition, it remains questionable whether Apple and its suppliers could find enough skilled workers in the United States. Tim Cook, Apple's CEO, commented on manufacturing in China back in 2017, explaining that iPhones are assembled there because of China's advanced manufacturing expertise. "The popular conception is that companies come to China because of low labor costs. But the reality is China stopped being the low-labor-cost country many years ago. The reason is the skills, the quantity of skills in one location, and the type of skill," Cook explained.

Cook also noted that Apple products require highly advanced tooling and precision material handling. "The tooling skill here is very deep. In the US, you could have a meeting of tooling engineers and I'm not sure we could fill the room. In China, you could fill multiple football fields. It's a very deep vocational expertise."

Contrary to President Trump's confidence, Needham analyst Laura Martin expressed skepticism about Apple's ability to manufacture iPhones in the United States. "I don't think it's a viable thing," Martin said on CNBC's "The Exchange." She suggested that Apple's costs would skyrocket if it began building its flagship product domestically. Martin isn't the only Wall Street voice raising concerns. Wedbush analyst Dan Ives estimated that an iPhone would cost $3,500 if manufactured in the US—a price nearly three times higher than current models.

Supply chain relocation

Furthermore, the process of Apple relocating its supply chain to the United States would take many years, according to Martin. Most supply chain experts consider it impossible to completely manufacture iPhones in the US. They emphasize that Apple's complex global supply chain, with components sourced from over 50 countries, cannot be simply disrupted or consolidated in a single country, even if that country is the United States.

In the context of escalating trade tensions, Apple faces unprecedented challenges. The company's stock has declined sharply in recent days as investors worry about the impact of new tariffs. However, experts' dismissal of the feasibility of US iPhone production raises questions about the practicality of the Trump administration's "America First" policy, at least regarding high-tech products with complex global supply chains like the iPhone.

Industry observers note that while bringing manufacturing back to American soil appeals to many voters, the economic realities and global interconnectedness of modern technology production present significant obstacles to such initiatives. As trade policies continue to evolve, companies like Apple must navigate the delicate balance between governmental pressures and maintaining competitive pricing for consumers worldwide.