If Donald Trump should get what he wants, the iPhone could become a luxury for a few. The US president threatened to impose duties of 25% On all imported smartphones, hitting Apple in particular, accused of relocating too much in India and China.
According to the estimates of Wedbush and Ubs analysts, an iPhone 16 Pro Max, which today costs about $ 1,200, could cost up to $ 3,500 if it were entirely made in the USA. Several reasons, between higher wages, built infrastructures and a supply chain that today lives on the other side of the world.
Still Trump duties: 25% on each iPhone
The tensions between Trump and Apple are not new, but they intensified after the announcement of the opening of New production plants in India. On May 23, 2025, in the middle of the commercial war, the president threatened New duties of 25% (Like new EU threats) on all imported smartphones, including iPhones. The stated goal is clear to report “home” production in the United States.
Trump had imposed generalized rates against China, but temporarily excluding smartphones not to hit Apple directly. Now the line is harder: if Cupertino continues to produce abroad, he will have to pay and the Americans with her.
The cost of an iPhone made in the USA
The first obstacle is the labor. In India A worker earns on average 161 dollars a monthwhile in the United States the average salary for the same type of work is $ 2,859. This means a cost 17 times higher only for the workforce.
To this are added:
- the absence of local and specialized suppliers;
- the logistical infrastructure to be built from scratch;
- The need to reinvest tens of billions of dollars to create a new supply chain.
According to Wedbush, producing an iPhone entirely in the United States would take at least 3 years and 30–50 billion of investment. The result would be a final price that would come to exceed $ 3,500 For a high -end model.
The iPhone DNA: where the components come from
Talking about “American iPhone” therefore seems impossible. Also because Apple’s top product is a global product. Each component comes from a different continent:
- body and battery from China
- 5G display and modem from South Korea
- cameras and memory from Japan
- Taiwan processor
- RAM from the United States
The assembly takes place in China and, to a growing extent, in India. Reconstructing this supply chain in the US would mean replicating a consolidated ecosystem that involves hundreds of suppliers, engineers and micro-specifications. A move that would put time, quality and profitability at risk.
Can Apple really afford it?
Apple is known for its high margins. According to different analyzes, on each iPhone sold the company holds a operating margin that exceeds 40%. Part of this success is linked precisely to the Asian production chain, which allows you to contain costs and climb production.
Impose a 25% duty or force the repatriation of production would therefore mean drastically reducing the margin for the company, or download costs on the consumer final. In any case, the risk is to lose competitiveness compared to other strong brands such as Samsung and Xiaomi. Apple could also choose a third way, or raising prices only in the United States, but would penalize the internal market.
