Despite the Trump's administration's predictions that tariffs on China might push Apple to manufacture iPhones in the U.S., this scenario remains unlikely. The existing 145% tariffs on Chinese products present various challenges, including Apple's deeply established supply chain developed since the 1990s. Building new manufacturing plants in the U.S. would require significant investment, potentially leading to tripled prices for iPhones. Although electronics are currently excluded from tariffs, future impositions could still affect production decisions. Analysts suggest that any domestic manufacturing might not occur before 2028.
The disincentives for Apple shifting its production domestically include a complex supply chain that it began building in China during the 1990s.
Wedbush Securities analyst Dan Ives estimated that the current $1,000 price tag for an iPhone made in China, or India, would soar to more than $3,000 if production shifted to the U.S.
Apple might get a reprieve as the Trump administration has excluded electronics from the current reciprocal tariffs.
Moving production domestically likely couldn't be done until at the earliest, 2028.
Collection
[
|
...
]