Experts estimate that the price of the iPhone could rise to $3,500 if it were manufactured in the US instead of the current $1,000.
"If you build a supply chain in the US, like factories in West Virginia and New Jersey, you'll have $3,500 iPhones," Dan Ives, director of technology research at financial services firm Wedbush Securities, told CNN.
On April 2, US President Donald Trump said that thanks to tariffs, many manufacturing jobs would eventually be “returned to the US”, creating jobs for millions of Americans.
However, Ives assessed this as “fiction”. To produce iPhones in the US, it is imperative to “copy the extremely complex manufacturing ecosystem that exists in Asia”. He estimated that Apple would need to spend at least $30 billion in the first three years to move 10% of their supply chain to the US.
In fact, despite being an American company, Apple’s entire production process depends on Asia - where it has built a closed supply ecosystem that has helped reduce costs. The chips that power the iPhone are made in Taiwan, the display panels are supplied by Korea, and many other components are made in China. China and India are also responsible for iPhone assembly.
Since Trump took office in late January, Apple shares have lost about 25% of their value as investors worry about tariffs affecting the supply chain, especially in China, which makes 90% of iPhones. On April 9, Trump announced a 10% tariff cut and a 90-day delay for some countries, while China increased it to 125%.
"That's why the stock price has been falling, because no company is more caught up in this tariff war than Apple," Ives said.
Apple has not commented.
Previously, experts predicted that iPhone prices would likely increase, even if the supply chain remained the same. Reuters cited a report from Rosenblatt Securities, a New York-based investment bank, that iPhones could cost 43% more if Apple "passes the full cost of the new tariffs on to consumers."
Neil Shah, vice president of research at Counterpoint Research, predicts that iPhone prices could be about 30% higher, but it depends on where they are made. Americans are reportedly rushing to buy iPhones in anticipation of higher prices, according to Bloomberg.
There are signs that Apple is stockpiling devices in the US ahead of the new tariffs. The Times of India reported on April 7, citing a senior Indian official, that five flights loaded with iPhones and other Apple products had arrived from India and China "in just the last three days of March."
According to observers, the stockpiling of goods could help Apple delay the impact in the US - its largest market. However, in the future, they may have to change their policies if the tariffs remain the same or continue to increase.
Meanwhile, some technology companies also face taxes if they do not bring production back to the US. On April 8, Trump said he would impose a “massive tariff” of up to 100% if chipmaker TSMC did not build a factory in the US.
“The chip companies are very wealthy,” Trump said, referring to the CHIPS and Science Act signed by former President Joe Biden in 2022, which provides billions of dollars in incentives for companies to build factories in the US. “They’re given billions of dollars to build a factory in the US.”
“All I’m going to do is say, ‘If you don’t build a factory here, you’re going to pay a massive tax. It’s 25%, it could be 50%, it could be 75%, it could be 100%,’” he added.
When contacted by Business Insider, TSMC declined to comment. However, last month, the company said it would invest $100 billion to build five new chip factories in the US. This amount is in addition to the $65 billion investment package announced in April 2024.