Skip to content
May 9, 2025
  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • tiktok
MILLENNIUM NEWS 24/7

MILLENNIUM NEWS 24/7

Bridging The Community’s World Wide

  • Home
  • IP TV LIVE
  • PODCAST
  • U.S.News
  • ELECTION 2024
  • State News
    • Alabama
    • Alaska
    • Arizona
    • Arkansas
    • California
    • Colorado
    • Connecticut
    • Delaware
    • Florida
    • Georgia
    • Hawaii
    • Idaho
    • Illinois
    • Indiana
    • Iowa
    • Kansas
    • Kentucky
    • Louisiana
    • Maryland
    • Massachusetts
    • Michigan
    • Maine
    • Minnesota
    • Mississippi
    • Missouri
    • Montana
    • Nebraska
    • Nevada
    • New Hampshire
    • New Jersey
    • New Mexico
    • New York
    • North Carolina
    • North Dakota
    • Oregon
    • Pennsylvania
    • Rhode Island
    • South Carolina
    • South Dakota
    • Tennessee
    • Texas
    • Virginia
    • Washington
    • West Virginia
    • U.S. Virgin Islands
  • Politics
  • World News
  • Sports
  • Entertainment
  • Weather
  • Business
  • Advisement
  • Health News
  • About Us
  • Contact us
Live TV

Apple has few incentives to start making iPhones in US, despite Trump’s trade war with China

SAN FRANCISCO — President Donald Trump’s administration has been predicting its barrage of tariffs targeting China will push Apple into manufacturing the iPhone in the United States for the first time.

But that’s an unlikely scenario even with U.S tariffs now standing at 145% on products made in China — the country where Apple has manufactured most of its iPhones since the first model hit the market 18 years ago.

The disincentives for Apple shifting its production domestically include a complex supply chain that it began building in China during the 1990s. It would take several years and cost billions of dollars to build new plants in the U.S., and then confront Apple with economic forces that could triple the price of an iPhone, threatening to torpedo sales of its marquee product.

They might get a reprieve. The Trump administration said late Friday it was excluding electronics, including smartphones, from the current reciprocal tariffs. But it still could levy new or different tariffs on electronics at a later date.

“The concept of making iPhones in the U.S. is a non-starter,” asserted Wedbush Securities analyst Dan Ives, reflecting a widely held view in the investment community that tracks Apple’s every move. He estimated that the current $1,000 price tag for an iPhone made in China, or India, would soar to more than $3,000 if production shifted to the U.S. And he believes that moving production domestically likely couldn’t be done until, at the earliest, 2028. “Price points would move so dramatically, it’s hard to comprehend.”

Apple didn’t respond to a request for comment Wednesday. The Cupertino, California, company has yet to publicly discuss its response to Trump’s tariffs on China, but the topic may come up on May 1 when Apple CEO Tim Cook is scheduled to field questions from analysts during a quarterly conference call to discuss the company’s financial results and strategy.

And there is no doubt the China tariffs will be a hot-button issue given Apple’s stock price has dropped by 15% and lowered the company’s market value by $500 billion since Trump began increasing them on April 2.

If the tariffs hold, Apple is widely expected to eventually raise the prices on iPhones and other popular products because the Silicon Valley’s supply chain is so heavily concentrated in China, India and other overseas markets caught in the crossfire of the escalating trade war.

The big question is how long Apple might be willing to hold the line on its current prices before the tariffs’ toll on the company’s profit margins become too much to bear and consumers are asked to shoulder some of the burden.

One of the main reasons that Apple has wiggle room to hold the line on its current iPhone pricing while the China tariffs remain in place is because the company continues to reap huge profit margins from the revenue generated by the subscriptions and other services tied to its product, said Forrester Research analyst Dipanjan Chatterjee. That division, which collected $96 billion in revenue during Apple’s last fiscal year, remains untouched by Trump’s tariffs.

“Apple can absorb some of the tariff-induced cost increases without significant financial impact, at least in the short term,” Chatterjee said.

Apple tried to appease Trump in February by announcing plans to spend $500 billion and hire 20,000 people in the U.S. through 2028, but none of it was tied to making an iPhone domestically. Instead, Apple pledged to fund a Houston data center for computer servers powering artificial intelligence — a technology the company is expanding into as part of an industrywide craze.

When asked this week about whether Trump believes Apple intends to build iPhones in the U.S., White House Press Secretary Karoline Levitt pointed to Apple’s investment promise as evidence that the company thinks it could be done. “If Apple didn’t think the United States could do it, they probably wouldn’t have put up that big chunk of change,” Leavitt said.

U.S. Commerce Secretary Howard Lutnick also predicted tariffs would force a manufacturing shift during an April 6 appearance on a CBS news program. “The army of millions and millions of human beings screwing in little screws to make iPhones, that kind of thing is going to come to America,” Lutnick said.

About Author

Habib Habib

See author's posts

Continue Reading

Previous: Ahead of spaceflight, Katy Perry is reading Carl Sagan and channeling her ‘feminine divine’
Next: Trump administration says it will exclude some electronics from reciprocal tariffs

Related Stories

Pakistan shoots down Indian drone near naval base in the city of Lahore, officials say

Pakistan shoots down Indian drone near naval base in the city of Lahore, officials say

Chris LaCivita, Paul Manafort are among ex-Trump aides working to make Albania ‘grandiose’ again

Chris LaCivita, Paul Manafort are among ex-Trump aides working to make Albania ‘grandiose’ again

A rare New Zealand snail is filmed for the first time laying an egg from its neck

A rare New Zealand snail is filmed for the first time laying an egg from its neck

Entertainment

‘SNL’ to close out its 50th season with Scarlett Johansson and Bad Bunny 1

‘SNL’ to close out its 50th season with Scarlett Johansson and Bad Bunny

Jen Psaki stepping up for MSNBC as Rachel Maddow returns to once-a-week schedule 2

Jen Psaki stepping up for MSNBC as Rachel Maddow returns to once-a-week schedule

Book publishers see surging interest in the US Constitution and print new editions 3

Book publishers see surging interest in the US Constitution and print new editions

What to know about Harvey Weinstein’s #MeToo retrial with jury selection set to get underway 4

What to know about Harvey Weinstein’s #MeToo retrial with jury selection set to get underway

Ahead of spaceflight, Katy Perry is reading Carl Sagan and channeling her ‘feminine divine’ 5

Ahead of spaceflight, Katy Perry is reading Carl Sagan and channeling her ‘feminine divine’

British police charge comedian Russell Brand with rape and sexual assault 6

British police charge comedian Russell Brand with rape and sexual assault

Mariah Carey didn’t steal ‘All I Want For Christmas Is You’ from other writers, a judge says 7

Mariah Carey didn’t steal ‘All I Want For Christmas Is You’ from other writers, a judge says

Top News

Pakistan shoots down Indian drone near naval base in the city of Lahore, officials say

Pakistan shoots down Indian drone near naval base in the city of Lahore, officials say

Chris LaCivita, Paul Manafort are among ex-Trump aides working to make Albania ‘grandiose’ again

Chris LaCivita, Paul Manafort are among ex-Trump aides working to make Albania ‘grandiose’ again

A rare New Zealand snail is filmed for the first time laying an egg from its neck

A rare New Zealand snail is filmed for the first time laying an egg from its neck

India fires missiles into Pakistani territory in what Islamabad calls ‘act of war’

India fires missiles into Pakistani territory in what Islamabad calls ‘act of war’

  • Home
  • About Us
  • Facebook
  • Twitter
  • Instagram
  • Youtube
  • tiktok
Editor Nur M Tofader, 544 Taylor Avenue Bronx New York USA 10473, Tell: 7186396600, 7186396800, 7188441300, Email: Info@millenniuamnews24.com, Copyright © Millennium News 24/7 | DarkNews by AF themes.