President Trump thinks iPhones should be made in America. But analysts? Not buying it. Apple’s stock is taking a hit, and experts say the numbers just don’t add up.
Apple is once again in the political spotlight—this time with a manufacturing twist. After former President Donald Trump floated the idea of Apple building iPhones in the U.S. to avoid harsh new tariffs, Wall Street analysts were quick to pour cold water on the plan. One of them didn’t even sugarcoat it: “I don’t think that’s a thing.”
Laura Martin Isn’t Mincing Words
Needham’s Laura Martin didn’t dance around the question when asked on CNBC’s The Exchange this week. Responding to the Trump team’s push for American-made iPhones, she flat-out rejected the idea.
Two things stand in the way, she said: time and cost. Mostly cost.
Martin warned that relocating iPhone production to the U.S. could spike Apple’s costs by 50%. That’s a massive chunk when you’re selling millions of devices every quarter.
Then there’s the timeline. Moving a supply chain of that scale? Not happening overnight. It’d take years, and that’s being generous.
One sentence was enough to sum up her skepticism.
What $3,500 iPhones Could Look Like
If Apple actually tried to make iPhones entirely in the U.S., Wedbush’s Dan Ives thinks you’d better get ready to empty your wallet. According to his estimates, a U.S.-made iPhone could carry a retail price tag of $3,500.
Yes, you read that right. Three thousand five hundred bucks.
Here’s how that math works out:
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Labor costs in the U.S. are 5x to 10x higher than in Asia.
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Most key suppliers and parts manufacturers are based in China, India, or Vietnam.
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Restructuring the supply chain would mean massive capital outlays and long delays.
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The economies of scale Apple enjoys overseas would disappear instantly.
There’s also the talent gap. As much as America has an eager workforce, high-volume electronics assembly isn’t exactly our strong suit anymore.
The Politics Behind the Push
White House Press Secretary Karoline Leavitt was the one who reignited the conversation. Speaking to reporters on Tuesday, she claimed Trump believes the U.S. is fully capable of producing iPhones domestically.
“He believes we have the labor, we have the workforce, we have the resources to do it,” she said confidently.
Leavitt pointed out Apple’s massive $500 billion investment in the U.S. as proof that the company has faith in the American economy. But critics argue that investment mostly supports retail operations, data centers, and offices—not factories.
The optics of “Made in America” sound great politically. But that doesn’t make the economics any less brutal.
Tariffs Trigger Market Jitters
Meanwhile, Apple’s stock took a sharp dive. Shares dropped nearly 5%, shedding more than $160 billion in market value in a matter of hours.
Trump’s latest tariff retaliation. China is now facing a cumulative 104% tariff rate on key tech goods, starting just after midnight. That’s not just bad news for Chinese factories—it’s a full-blown migraine for companies like Apple that rely heavily on them.
India and Vietnam, where Apple has also expanded production, are reportedly on the tariff watchlist too. Just one sentence here: It’s not looking good.
Where the Real Money Goes
Let’s put things into perspective. Apple doesn’t actually manufacture the iPhone on its own—it relies on a vast network of suppliers and assemblers.
Here’s a quick breakdown of iPhone production:
| Component | Primary Country | Key Supplier |
|---|---|---|
| Assembly | China, India | Foxconn, Pegatron |
| Display Panels | South Korea | Samsung, LG Display |
| Chips (A-series) | USA, Taiwan | TSMC, Apple (design only) |
| Batteries | China, Japan | Sunwoda, Murata |
| Sensors/Camera | Japan, China | Sony, Largan Precision |
So even if Apple wanted to make the iPhone in the U.S., it would have to rebuild an entire ecosystem. That’s not just expensive—it’s nearly impossible.
And let’s be honest: Apple didn’t grow into a $2.6 trillion company by making unprofitable moves.
What Wall Street Is Watching Now
Investors aren’t just worried about the cost of production. They’re nervous about what comes next.
A 50% cost spike is what Laura Martin projects if tariffs stick and domestic production gets forced into the picture. That kind of margin compression would be catastrophic—even for Apple.
This latest hit comes at a delicate time. Apple is already under pressure from slowing iPhone sales in China and lukewarm demand in Europe. Now, with production at risk and global shipping routes potentially disrupted, Wall Street is bracing for a bumpy ride.
For now, the consensus is clear: Apple isn’t moving its production to Ohio or Texas any time soon.
And if it does? Better start saving now for that $3,500 iPhone.
