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Apple Faces Projected 90% Cost Surge for U.S. iPhone Production

Analysts warn of skyrocketing prices and logistical hurdles as Apple explores U.S. manufacturing and alternatives in India to navigate trade tensions.

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A tourist uses an iPhone to take a selfie with Donald Trump impersonator Ed Weiskopf in front of the White House in Washington, April 9, 2025. Photo: Reuters
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Overview

  • Producing iPhones in the U.S. could raise manufacturing costs by up to 90%, primarily due to higher labor expenses and tariffs on imported components.
  • Retail prices for U.S.-manufactured iPhones are predicted to soar to approximately $3,500, over three times their current price.
  • Apple would need an estimated $30 billion and three years to relocate just 10% of its supply chain to the U.S., highlighting the complexity of such a shift.
  • Ongoing U.S.-China trade disputes, including President Trump's 125% tariff on Chinese imports, are significantly impacting Apple's supply chain and market strategy.
  • In response to escalating costs and tariffs, Apple is reportedly considering expanding iPhone production in India as a diversification strategy.