Experts Reveal Why Moving iPhone Production to the US Could Be a £77,000 Mistake

The cost of owning an iPhone may be about to skyrocket, as President Donald Trump ramps up international tariffs in a move that has left global markets reeling. His administration's decision to increase tariffs on Chinese imports from 34% to a staggering 125% has not only escalated a growing trade war but also pushed Apple—and its customers—into a challenging corner. With iPhones assembled in China and shipped to the United States, questions are mounting: could these iconic devices be more affordable if they were made on American soil?

Could an iPhone Made in the US Cost £77,000?

The idea of shifting iPhone production to the United States might seem like a patriotic and practical solution, but experts warn it would be economically disastrous. The infrastructure required to support iPhone manufacturing has long been established in Asia, particularly China, allowing Apple to focus on high-value areas like design and software. Recreating even 10% of Apple's complex supply chain domestically would cost around £23 billion ($30 billion) and take at least three years.

Dan Ives, head of technology research at Wedbush Securities, dismissed the notion outright. 'You build that (supply chain) in the US with a fab in West Virginia and New Jersey. They'll be $3,500 (£2,740) iPhones,' he warned.

But that figure pales in comparison to earlier predictions. In 2018, investor Glenn Luk calculated that manufacturing iPhones in the US could inflate prices to an astronomical £23,244 ($30,000) or even £77,482 ($100,000). He cited a skills gap between American and Asian workforces, particularly a shortage of tooling engineers, making mass production highly impractical.

Harry Mills, founder of Oku Markets, echoed those concerns, stating that moving production stateside would be a 'Herculean effort'. Labour costs in the US would be significantly higher than in China or Taiwan, and consumers would inevitably bear the brunt.

Despite industry pushback, Apple has committed to investing £387 billion ($500 billion) in the US over the next four years in a bid to reduce its dependence on Chinese manufacturing.

The Global Supply Chain Behind Every iPhone

Apple's current production model spans nearly 50 countries, but China remains the linchpin. According to CNN, 158 of Apple's 188 suppliers have a connection to China. Taiwan and Singapore follow closely behind, with other key contributors including Japan, Vietnam, South Korea, Thailand, and the United States. Germany leads Europe's contributions with nine supplier locations.

Apple's chips are made in Taiwan, screens come from South Korea, and cameras are sourced from Japan, South Korea, and Taiwan. Additional components like sensors and batteries are manufactured in the US, France, Germany, and the Far East. Once assembled—80% in China, 10–15% in India, and the rest in Vietnam—these parts form the backbone of one of the world's most iconic devices.

Trump's sweeping tariffs affect nearly every country involved in this supply chain. India (26%), Japan (24%), Vietnam (46%), South Korea (25%), Taiwan (32%), Singapore (10%) and the EU (10%) are all targeted. As a result, Apple's share value has plummeted by 25%.

Why iPhone Prices Are Set to Soar

The implications are clear: Apple will need to raise its prices to maintain profitability. Analysts from Rosenblatt Securities and industry expert Neil Shah estimate a price hike of 30% to 43% to cover new production costs.

Ben Barringer, global technology analyst at Quilter Cheviot, laid out Apple's options: 'The Apple chief executive will then have two choices – do you put up the price, or take a hit on your growth margins? My logic would say that the tariffs into the US impact the cost of making the iPhone, and the Chinese tariff will increase the retail price in China.'

He added that these developments are 'bad news for consumer electronics', warning of widespread disruption to global supply chains.

British Consumers Could Feel the Pinch

British buyers are unlikely to be spared. As Harry Mills told MailOnline, 'Increased costs of production for Apple would ultimately mean higher prices for UK consumers; that is unless you expect Apple to swallow these higher costs and take a hit to its margin.'

Mills explained that Apple tends to maintain price parity between the UK and US. For example, the iPhone 16 Pro is priced at $999 in the US and £999 in the UK. If Trump's tariffs increase the production cost by $300, the UK equivalent could see a price rise of £300 as well.

With China now imposing a retaliatory import tariff of 104%, those price hikes could be even steeper. According to Mills, that could mean the iPhone 16 Pro Max might soon cost £1,600.

The Bigger Picture: Global Tensions, Local Consequences

While relocating iPhone manufacturing to the US might sound appealing to policymakers, experts across the tech industry agree it would lead to dramatically inflated prices and widespread logistical complications. Trump's aggressive trade policies, though intended to prioritise American production, risk harming both consumers and multinational tech firms like Apple.

The prospect of paying upwards of £1,600 for an iPhone is a wake-up call for consumers around the world. As the global economy adjusts to new tariffs and supply chain shifts, the luxury of a reasonably priced smartphone could soon be a thing of the past.

As experts warn, global trade disputes are no longer just abstract political manoeuvres—they are beginning to affect the wallets of everyday consumers. And unless there is a swift change in trade policy or a dramatic innovation in how smartphones are made, the next iPhone launch might come with more sticker shock than fanfare.