The Made in USA iPhone has gained a lot of attention lately. Apple’s iPhone has long served as the global standard for technological innovation. However, what if that recognizable device was produced wholly in the US? Since US President Trump and Apple CEO Tim Cook spoke about the issue, demand for a “Made in America” iPhone has only increased.
The White House defended its “reciprocal tariffs,” claiming that President Donald Trump thinks the United States has the manpower and resources to produce iPhones in the country. Tim Cook, the CEO of Apple, and no other employee of the tech behemoth have, however, openly endorsed that assertion. Analysts who support Apple claim that a fully made is usa iPhone is at best unaffordable and at worst impossible.
An iPhone is made up of over 1,000 parts from all over the world, but the majority are manufactured and put together in China. Analysts estimate that approximately 90% of Apple’s iPhones are assembled in China, although the company does not disclose its manufacturing details. Trump brought up the Made in USA a tagline for this reason.
The concept of a “Made in USA iPhone” has gone from being theoretical to being highly sought-after due to mounting political pressure, tariffs, and a growing emphasis on domestic production. However, how much more would you actually have to pay?
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Although US imports are subject to the tariffs, some analysts have cautioned that the cost of iPhones and other Apple products may increase as a result. Wamsi Mohan, an analyst at Bank of America, stated that he anticipates any price increases to be geographically widespread, even though price imbalances might happen geographically and not just in the biggest iPhone markets, According to The Guardian.
The results of the calculations made by industry experts are startling. The labour costs alone for the iPhone 16 Pro, which is currently $1,199, could rise by 25% (estimate iPhone Price Increase). That amounts to about $1,500 for the gadget. Compared to China, where Apple currently assembles the majority of its products through partners like Foxconn, labour costs in the United States are much higher.
According to a Tech-Insights and Reuters study, labour costs in the United States alone would be between $30 and $40 per iPhone, while in China they would only be a few dollars.
It becomes evident why the current model Favors manufacturing abroad when you factor in the costs of constructing and maintaining high-tech manufacturing infrastructure, complying with regulations, and sourcing domestic components.
According to Apple CEO Tim Cook, the lack of skilled workers in the US is another significant obstacle to a Made in USA iPhone. Cook noted in a 2017 interview that the nation does not have enough tooling engineers, experts who assemble and adjust the complex machinery that transforms Apple’s intricate digital designs into tangible parts. It would be extremely difficult to achieve full-scale iPhone manufacturing in the United States without this vital workforce.
The discussion has also gained attention due to the tariff issue. The Trump administration levied tariffs on Chinese-made electronics, including smartphones, during the trade spat between the United States and China.
As a result, Apple was forced to either absorb the extra expenses or pass them along to customers. Concerns regarding affordability were heightened when Bloomberg revealed that tariffs could raise the price of the iPhone by as much as $70 to $100.
Apple will therefore negotiate tariff breaks and relocate some assembly to nations like Vietnam and India in order to strategically diversify its supply chain. However, without significant structural changes, an iPhone that is entirely made in the United States will not be able to avoid these costs.
It’s interesting to note that Apple has already started made in usa down this path. Since 2018, the company has made over $430 billion in economic investments in the United States, including funds for advanced manufacturing for suppliers like Corning and funding for chip manufacturing in Arizona.
Furthermore, Apple has started assembling some Mac models in the US and incorporates made in usa chips and glass into its products. However, complete localization is extremely difficult due to the iPhone’s intricate supply chain, which involves more than 200 suppliers globally.
How much would an iPhone manufactured made in usa actually cost? It is highly probable that the current $999 price of an iPhone will rise to $1,200 or more. While many may find that shocking, others may view the cost as a reasonable compromise for national economic security, job creation, and ethical manufacturing.
