Wed Apr 09 07:10:00 UTC 2025: ## Trump’s Tariffs Could Send iPhone Prices Soaring to $3,500: Analyst
**New York, NY** – President Trump’s sweeping global tariffs, touted as a means to bring back American jobs, could instead lead to a dramatic price hike for consumers, with the iPhone potentially reaching a staggering $3,500, according to a prominent tech analyst.
Dan Ives, global head of technology research at Wedbush Securities, warned that reshoring iPhone production to the US is a “fictional tale.” Replicating the complex Asian supply chain in the US would be incredibly expensive, requiring billions of dollars in investment and years of effort. He estimates it would cost Apple roughly $30 billion and three years to move just 10% of its supply chain.
The current reliance on Asian manufacturing, particularly in China and Taiwan, has allowed Apple to maintain its competitive pricing. However, the tariffs threaten to unravel this system. If Apple were to absorb the full cost of increased tariffs, iPhones could become 43% more expensive, according to Rosenblatt Securities. Counterpoint Research estimates a 30% price increase, depending on manufacturing location.
Apple’s stock has already fallen by approximately 25% since Trump’s inauguration, reflecting investor concern over the impact of tariffs. The company has announced a $500 billion investment in US production over the next four years, but analysts suggest that diversification to countries like India and Brazil may only partially mitigate the price increases. These alternative locations still face their own tariff hurdles.
Ives described the situation as “economic Armageddon,” particularly for the tech industry. The current system, which sees chip manufacturing in Taiwan, screen production in South Korea, and final assembly primarily in China, is highly efficient and cost-effective. Replicating this globally dispersed supply chain within the US would dramatically inflate manufacturing costs, ultimately burdening consumers.
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