Wedbush analysts have concluded that relocating Apple's iPhone production to the United States is essentially unfeasible due to prohibitive costs and complex supply chain adjustments. The iPhone's price could skyrocket to $3,500 if assembled in the US, compared to the current iPhone 16 starting price of $799 and iPhone 16 Pro at $999. The high production costs and supply chain overhaul would result in market-unacceptable pricing.
Discussion on this topic arose following comments from former US President Trump, who urged Apple CEO Tim Cook to halt expansion in India and shift more production to the US. Apple is gradually reducing reliance on China's supply chain by expanding in India. Analysts suggest that a potential zero-tariff trade agreement between the US and India could make Apple's expansion in India a visionary strategic move.
Several analysts, including those from Bank of America, believe moving production entirely to the US could increase manufacturing costs by up to 90% due to higher labor costs and supply chain complexity. The US currently lacks sufficient industrial infrastructure and skilled labor to support large-scale iPhone production.
Apple's (AAPL, Financial) stock rebounded to approximately $211 amid optimism about new trade agreements and reduced tariff pressures, despite being down about 13% year-to-date. Wedbush maintains a target price of $270, while Morgan Stanley holds steady at $235, expecting a short-term stock price fluctuation.
