President Donald Trump’s tariff threats against Apple have put pressure on the tech giant to consider manufacturing iPhones in the United States. However, industry experts describe the idea of U.S.-made iPhones as a “fairy tale.” They estimate that the cost of producing an iPhone domestically could skyrocket to $3,500. Apple has long been criticized for outsourcing production to countries like China.
Labor and manufacturing costs are significantly lower there. The company’s supply chain is deeply integrated with international manufacturing partners. This makes a U.S.-based production shift highly complex and expensive.
Experts note that the high cost is not just a matter of wages.
Apple’s domestic manufacturing dilemma
The infrastructure needed to support such advanced manufacturing processes is not readily available in the United States.
Furthermore, the expertise and scale that countries like China offer would be difficult to replicate domestically. Analysts argue that such a dramatic increase in production cost would make iPhones unaffordable for many consumers. It would undermine Apple’s market position and profitability.
Trump’s tariff threats are part of a broader trade tension between the U.S. and China. His goal is to bring more manufacturing jobs back to the United States. However, the practical implications for companies like Apple are complex.
It could result in significant price increases for consumers.
