How Much Would a Made-in-America iPhone Cost? Bank of America Breaks It Down

As geopolitical tensions between the United States and China intensify, one iconic product has found itself at the heart of the storm: the Apple iPhone. Known for its sleek design, powerful performance, and global appeal, the iPhone has long been assembled in China—a strategic decision that has kept costs down and supply chains agile. But with President Trump’s announcement of a 125% tariff on Chinese imports, the possibility of a made-in-America iPhone has moved from speculation to a hot-button economic issue.

So, how much would it really cost to produce iPhones in the United States? Bank of America (BoA) decided to find out—and the results are eye-opening.

Bank of America’s Findings: A Costly Proposition

According to a detailed analysis from Bank of America Global Research, moving iPhone production to the U.S. could significantly increase consumer prices—by as much as 90% in some scenarios.

Here’s a breakdown of their key findings:

1. Final Assembly in the U.S. Would Raise Costs by 25%

If Apple were to shift only the final assembly of its flagship iPhone 16 Pro Max to the U.S.—which currently retails at around $1,199—the price would increase by at least 25%. This increase is attributed primarily to higher labor costs. Unlike the relatively low wages in China, U.S. labor laws, benefits, and minimum wage standards would dramatically elevate production expenses.

2. Tariffs on Imported Components Could Push Price Hikes to 90%

Moving the final assembly is one thing, but if Apple had to pay tariffs on imported components as well, the cost implications would be far more severe. BoA estimates that the retail price of an iPhone could surge up to 90% under this scenario—potentially pricing the iPhone 16 Pro Max at approximately $2,300. That’s nearly double the current cost.

3. Supply Chain Challenges Remain a Major Barrier

BoA’s report also highlighted a critical issue: even if Apple could move assembly lines stateside, relocating the entire global supply chain to the U.S. is a far greater challenge. Apple relies on a sprawling network of suppliers and manufacturers, many of which are clustered in Asia, particularly in China, Taiwan, and South Korea. Replicating this infrastructure in America would require years of investment in facilities, talent development, and logistics.

Wedbush Weighs In: A Potential “Economic Armageddon”

Dan Ives, a tech analyst at Wedbush Securities, echoed BoA’s concerns—and then some.

According to Ives, U.S.-made iPhones could cost as much as $3,500 per unit if both manufacturing and supply chains are moved entirely to America. That’s nearly triple the current retail price of a high-end iPhone. He adds that consumers wouldn’t just feel the pinch on iPhones—prices on a wide range of consumer electronics could increase by 40–50%, affecting everything from laptops to headphones to smartwatches.

More alarmingly, Ives warns that the broader tech industry could take a 15% hit to earnings. In his view, such a blow could “take the U.S. tech industry back a decade,” allowing China to gain a strategic lead in hardware innovation, manufacturing dominance, and global tech influence.

Why Is Apple So Dependent on China?

Apple’s deep-rooted presence in China isn’t simply about cheap labor. Over the past two decades, the region has built a highly specialized and efficient electronics ecosystem. Cities like Shenzhen are home to thousands of component manufacturers, skilled engineers, and just-in-time logistics hubs.

Tim Cook, Apple’s CEO, has previously noted that it’s not about cost alone—it’s about scale and speed. The level of precision, reliability, and volume that Apple demands is currently only possible in Asia, where the infrastructure has been optimized specifically for such needs.

Can the U.S. Realistically Build iPhones?

In theory, yes. Final assembly could be brought to the U.S. with the right political will and investment. Apple already has some manufacturing presence in the country—it produces the Mac Pro in Texas, for example. But that’s a low-volume, high-price device. The iPhone, in contrast, is a high-volume consumer product with millions of units shipped each quarter.

Scaling up iPhone production in the U.S. would require:

• Massive investments in manufacturing plants
  
• Training a new generation of skilled labor
  
• Establishing domestic sources for parts like semiconductors, displays, and sensors
  
• Government subsidies or incentives to offset cost increases
  

Even with those efforts, most experts believe a complete supply chain shift would take 5 to 10 years—and billions of dollars.

Apple’s Dilemma: Patriotism vs. Profitability

The Trump administration’s call for American-made iPhones is rooted in the desire to bring manufacturing jobs back home and reduce economic dependency on China. While the sentiment resonates with many voters and nationalists, the reality for Apple is far more complicated.

For Apple, the stakes are high. It must balance:

• Political pressure from Washington
  
• Investor expectations for profitability and growth
  
• Customer demand for affordability and innovation
  
• Brand image as a global leader in technology
  

Relocating production could help Apple avoid tariffs—but at what cost? If the average iPhone becomes unaffordable to most consumers, Apple risks losing market share to competitors who continue to produce devices overseas.

The Bigger Picture: What This Means for the Tech Industry

Apple isn’t the only company affected by escalating tariffs. The entire U.S. tech ecosystem, from Google to Tesla, could be hit by rising production costs and disrupted supply chains.

Startups may find it harder to source affordable components. Consumers may delay upgrades due to higher prices. And tech giants may shift even more investment to overseas markets to avoid regulatory hurdles.

Meanwhile, China could emerge stronger, attracting companies from Europe, Latin America, and Africa seeking cost-effective production capabilities and rapid scalability.

The iPhone as a Symbol of a Bigger Economic Battle

At first glance, the question of how much it would cost to manufacture an iPhone in the U.S. seems like a technical one. But it’s also a symbolic one.

The iPhone has become more than a phone—it’s a cultural icon, an economic powerhouse, and now, a political pawn in a global power struggle. Whether or not Apple chooses to shift production, the discussion itself reflects broader tensions about globalization, self-reliance, and the future of American industry.

As tariffs rise and trade talks falter, one thing is clear: the real cost of a made-in-America iPhone isn’t just measured in dollars—it’s measured in decisions that could shape the tech world for decades to come.