Apple’s iPhone cost could rise 90% if it is made in US, BofA says

It is possible for Apple to move iPhone production to America, but it would almost double the cost of making the device while creating logistical headaches, according to Bank of America. “iPhone cost can increase 25 per cent purely on higher labour cost in the US,” BofA analysts led by Wamsi Mohan wrote in a note to clients on Wednesday. While the tech giant can find domestic labour for assembly, a “significant portion” of parts used in manufacturing the iPhone would still be assembled in China and imported to the US, they added.

Assuming Apple has to pay reciprocal tariffs on those imports, its total cost would rise 90% or more, they estimated. The estimate comes as President Donald Trump zeros in on China for his trade fight. The Trump administration paused its reciprocal tariffs on dozens of countries for 90 days, but increased its duties on China to 125 per cent.



Meanwhile, China slapped 84 per cent retaliatory levies on American goods. Apple shares are soaring on the news, up more than 10 per cent for their best day since July 2020. But the stock has taken a beating this year, losing 23 per cent, and is down 14 per cent since Trump’s tariff announcement on April 2, erasing US$479 billion in market capitalisation.

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