Producing iPhones entirely in the U.S. could more than double their price, according to industry experts. Analysts argue that shifting manufacturing from China and India would take years and inflate costs dramatically.
Currently, Apple’s latest iPhone 16 Pro starts at $1,000, while the Pro Max model costs $1,200. However, Wedbush Securities estimates that U.S. production could push prices as high as $3,500 per device.
Dan Ives, a Wedbush analyst, called the idea of American-made iPhones a “fairy tale.” He believes relocating production would require five to ten years of restructuring. Supply chain complexities and higher labor costs would further drive up expenses.
Recent political pressure has intensified the debate over domestic iPhone manufacturing. A former U.S. president recently proposed a 25% tariff on imported iPhones unless Apple moves production stateside.
Apple CEO Tim Cook has already shifted some manufacturing to India to avoid Chinese tariffs. Analysts predict 60-65% of U.S.-bound iPhones could come from India by this fall. However, full U.S. production remains unlikely due to logistical hurdles.
Despite these challenges, Apple has pledged major investments in American manufacturing. The company plans to spend $500 billion on U.S. operations, including a new AI server plant in Texas. It will also expand its Advanced Manufacturing Fund to $10 billion.
Additionally, Apple aims to open a manufacturing academy in Detroit and hire 20,000 new U.S. employees. These roles will focus on AI, silicon engineering, and machine learning.
Critics argue that even with these efforts, iPhones made entirely in America would become luxury items. The higher prices could shrink Apple’s customer base and hurt sales.
For now, analysts expect Apple to balance political pressures with cost efficiency. The company will likely continue diversifying production while avoiding full U.S. manufacturing.
For more business updates, visit DC Brief.
