iPhone prices could triple to $3,500 if manufacturing shifts to US

Dan Ives, global head of technology research at Wedbush Securities, told CNN in an interview: "You build that [supply chain] in the U.S. with a fab in West Virginia and New Jersey. They’ll be US$3,500 iPhones."
The phones cost around $1,000 now.

The chips that power iPhones are mostly produced in Taiwan, screens are supplied by South Korean companies and many other components are made in China. Final assembly takes place largely in China, where about 90% of iPhones are built.

Ives estimated it would take Apple three years and around $30 billion just to shift 10% of its supply chain to the U.S.

Since the Trump administration’s global tariff policies took effect, Apple’s stock has dropped by 25%, with concerns about the impact on its extensive supply chain, heavily reliant on China and Taiwan.

"That’s why I think you see what’s happened to the stock, because no company is more caught up in this tariff front and center in this category five storm than Cupertino and Apple," Ives said.

Even without relocating production, tech analysts expect prices to rise.

Rosenblatt Securities, a New York-based investment bank said iPhones could increase in price by 43% if Apple passes the full cost of higher tariffs on to consumers, according to a research note cited by Reuters.

Neil Shah, vice president of research at Counterpoint Research, estimated a 30% price hike depending on manufacturing locations.

Apple recently shipped five planeloads of iPhones and other products from India and China to the U.S. over three days in late March to avoid the new tariffs.

Its inventories in the U.S. are expected to cover several months’ demand, but if tariffs persist, Apple may be forced to raise prices globally to protect its margins.