Apple’s sleek, state-of-the-art iPhones might become a luxury reserved only for the elite if the company ever shifted its manufacturing base entirely to the United States. According to a recent interview with Global News, a tech industry expert explained how relocating iPhone production from Asia to the U.S. would drive up costs astronomically, resulting in iPhones priced at a jaw-dropping $3,500 or more.
This potential change has sparked widespread debate, especially in light of former President Donald Trump’s calls for Apple to bring its manufacturing back home.
Why Moving iPhone Production to the U.S. Is Not Feasible (Yet)
In the video interview, the expert detailed how complex and cost-sensitive Apple’s global supply chain is. Currently, Apple relies heavily on manufacturing hubs in China and, increasingly, India due to their established ecosystems, skilled labor force, and cost efficiency.
“If Apple were to move all iPhone production to the United States today, each iPhone could cost around $3,500,” the expert claimed.
This claim is visualized in the image above, which shows the iPhone manufacturing costs in different countries.
As illustrated:
- U.S.A.: ~$3,500 per unit (76% of overall production cost)
- China: ~$500 per unit (11% of overall cost)
- India: ~$550 per unit (13% of overall cost)
The difference is stark and shows why Apple continues to resist the push for U.S.-only production.
The Trump Tariff Pressure
Former President Donald Trump has reignited discussion on this issue by threatening to slap a 25% tariff on iPhones not made in the U.S., reinforcing his belief that American products should be “Made in America.” However, experts argue that the tariff pressure, while politically strategic, could lead to economic setbacks for Apple and significantly higher costs for consumers.
What Makes the U.S. Manufacturing So Expensive?
Analysts argue that transitioning iPhone production to the U.S. would be both economically and logistically challenging. The existing manufacturing infrastructure in countries like China and India offers cost advantages due to lower labor expenses and established supply chains. Replicating this ecosystem in the U.S. would require substantial investment in facilities, workforce training, and supply chain development.
Moreover, the time frame for such a transition is estimated to span several years. Experts suggest that even a partial relocation could take up to a decade, during which Apple would face increased production costs and potential disruptions to its product release schedules.
Several other factors contribute to the cost disparity:
- Labor costs in the U.S. are significantly higher than in China or India.
- Factory infrastructure would need to be built from the ground up.
- Supply chains for tiny components, such as micro screws and semiconductors are heavily Asia-based.
- Training and skill acquisition for a new workforce would require years of investment.
A Reuters report emphasized even the smallest obstacles, like sourcing tiny screws in the U.S., as major bottlenecks for production.
Why Apple Prefers India and China
Apple has already diversified some of its assembly to India, which offers a growing manufacturing ecosystem, strong government support, and slightly higher but manageable costs compared to China.
China, meanwhile, remains the backbone of Apple’s hardware assembly due to:
- High-volume production capabilities.
- Specialized manufacturing zones.
- Access to a skilled and scalable labor pool.
“Made in USA” Sounds Patriotic, But Comes at a Price
While the idea of making iPhones in the U.S. may resonate with national pride and political agendas, the economics tell a different story. According to experts and current data, bringing full-scale iPhone manufacturing to the U.S. would dramatically raise the cost per unit by more than 6X and make Apple’s flagship product unaffordable for the majority.
Until automation, supply chains, and labor costs can match overseas efficiency, the U.S. may remain a consumer of Apple’s global innovation rather than its manufacturing hub.
