Despite rising U.S. tariffs on China, Apple won’t make iPhones in the U.S. any time soon. The Trump administration had hoped that high tariffs would force Apple to shift production stateside. However, Apple has strong reasons to stick with its current setup in Asia.
The company has long depended on China’s manufacturing strength. Apple built its supply chain there in the 1990s. Shifting this massive operation to the U.S. would be expensive and time consuming. Experts believe it would take years and billions of dollars.
Furthermore, moving production to the U.S. could triple the cost of an iPhone. Currently, an iPhone costs about $1,000. If made in the U.S., that price could soar to over $3,000. According to analyst Dan Ives from Wedbush Securities, the idea is “a non-starter.”
Even if Apple wanted to move now, it couldn’t happen quickly. The earliest possible date for such a shift could be 2028. But even then, the company would face major workforce challenges. Tim Cook once said the U.S. lacks enough skilled tooling engineers.
Apple won’t make iPhones in the U.S. because it also benefits from operations in India and Vietnam. These countries now handle a portion of Apple’s production. The shift began during Trump’s first term, after the initial round of tariffs.
Though Apple didn’t comment on the current situation, all eyes are on the company’s next earnings call. CEO Tim Cook will speak on May 1. Analysts expect him to face tough questions about tariffs and production strategy.
Meanwhile, Apple’s stock has dropped 15% since tariffs increased on April 2. That decline has wiped $500 billion off the company’s market value. However, Apple continues to earn strong profits through services and subscriptions. These services brought in $96 billion last year. They remain untouched by the new tariffs.
In February, Apple announced plans to invest $500 billion in the U.S. through 2028. But the money won’t go toward building iPhones. Instead, it will fund a Houston data center focused on artificial intelligence.
Still, the White House remains hopeful. Press Secretary Karoline Leavitt sees Apple’s investment as a sign of belief in U.S. manufacturing. Commerce Secretary Howard Lutnick also claimed the tariffs will drive production to America.
But experts remain doubtful. Cook once said that in the U.S., you can’t even fill a room with skilled engineers. In China, you could fill several football fields. This gap remains a big hurdle.
Even though Trump toured a Mac factory in Texas in 2019, that plant opened years earlier. Apple began assembling Macs there in 2013, under President Obama.
For more business news updates, visit Dc brief.
