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Apple's iPhone Could Break the Bank: Here's Why US Manufacturing Is a Tech Nightmare

Tech giants like Apple have been playing a global game of manufacturing musical chairs, and President Trump’s latest demand might just make iPhones cost more than your rent.

The $3,500 iPhone Reality

Imagine paying three times the current price for your shiny new smartphone. That’s the potential nightmare scenario analysts are warning about if Apple is forced to manufacture iPhones entirely in the United States. Dan Ives from Wedbush Securities dropped a bombshell prediction: US-made iPhones could skyrocket to a whopping $3,500.

The Complex Global Supply Chain

Currently, about 90% of iPhone production happens in China, with critical components sourced from Taiwan and South Korea. Replicating this intricate manufacturing ecosystem in the US would cost Apple approximately $30 billion and take three years - and that’s just to move 10% of their supply chain.

The Economic Ripple Effect

Apple’s already feeling the heat, with its stock losing over 14% due to tariff concerns. The company is strategically diversifying production to India and Brazil, trying to dodge potential economic landmines. Tim Cook has already signaled that most iPhones entering the US will be shipped from India, demonstrating the company’s nimble approach to global manufacturing challenges.

The bottom line? Your next iPhone might require a small loan if US manufacturing becomes mandatory.

AUTHOR: mp

SOURCE: The Mercury News