It’s hard to imagine shelling out over three grand for a new iPhone, but that’s exactly what one top tech analyst says could happen if Apple shifts production to the United States. Amid escalating tariffs and political pressure to bring manufacturing jobs back home, the cost of American-made iPhones could skyrocket, and it’s not just a guess.
Dan Ives, a well-respected tech analyst at Wedbush Securities, told CNN’s Erin Burnett that the idea of reshoring Apple’s supply chain is a “fictional tale”– at least if the goal is to do it without punishing the consumer.
“You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” Ives warned. That’s over three times today’s price tag, which already hovers around $1,000.
Tariffs Bite Deep Into Tech
The Trump administration’s sweeping global tariffs, which the former president celebrated in his “Liberation Day” speech, have triggered concerns across the tech world. While officials claim jobs will come roaring back, experts say the cost will fall squarely on American consumers. From electronics to clothing, retail prices are expected to rise. In Apple’s case, the stakes are especially high.
Apple assembles nearly 90% of iPhones in China, where it benefits from a highly specialized and cost-efficient supply chain. The chips come mainly from Taiwan, screen panels from South Korea, and a range of components from China itself. Rebuilding that complex network in the U.S. would cost Apple at least $30 billion and take three years to move just 10% of operations, Ives said.
According to reports, a leading tech analyst has warned that the price of an iPhone could rise to around $3,500 if Apple were to manufacture its devices entirely in the United States. Replicating the complex supply chain currently based in Asia would be both costly and… pic.twitter.com/arv6PaetLn
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Even without relocating production, tariffs alone could push iPhone prices higher. A report by Rosenblatt Securities suggested a potential 43% price hike if Apple passes all tariff costs to consumers. Neil Shah from Counterpoint Research echoed that concern, estimating a 30% jump depending on manufacturing location.
Apple has already committed $500 billion to expand its U.S. footprint over the next four years. Still, with limited capacity in alternate regions like India and Brazil, Apple’s options remain tight. As Ives said, “It’s an economic Armageddon—especially for the tech industry.”
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