Tariffs may push iPhone prices to $3,500, experts warn

The recent introduction of tariffs by the US government on imported goods has sparked concerns about a potential surge in smartphone prices, particularly iPhones. Aimed at boosting domestic manufacturing, the tariffs are part of a broader strategy supported by former President Donald Trump to bring jobs back to American soil. However, tech industry experts warn that the move could lead to significant cost increases for consumers.

Also Read: Trump’s tariff war sparks iPhone price surge in the U.S.

Reports suggest that if Apple were to manufacture iPhones entirely in the United States, the retail price could skyrocket to approximately $3,500 — more than triple the current $1,000 price tag. This dramatic rise would result from the immense costs involved in building and operating high-tech facilities in the US. Apple currently assembles most of its devices in China, where labor and infrastructure costs are far lower.

Relocating even a fraction of Apple’s production to the US would take at least three years and an estimated $30 billion, affecting only about 10% of its supply chain. iPhone components are sourced globally — chips from Taiwan, displays from South Korea, and various parts from China — and centralized assembly helps Apple maintain competitive pricing.

Since the tariff announcement, Apple’s stock has dropped by around 25%. In response, the company is exploring alternative manufacturing hubs such as India and Brazil to reduce reliance on China and minimize future cost hikes.