Trump's Tariffs Could Push Apple iPhone Prices To A Staggering $3,500, Says Top Analyst

Following President Donald Trump‘s global tariffs, a leading tech analyst has predicted that Apple Inc. AAPL iPhones could see a significant price hike if manufacturing shifts to the U.S.

What Happened: Dan Ives, the global head of technology research at Wedbush Securities, suggests that iPhones manufactured in the U.S. could cost more than three times their current price, reaching around $3,500. This is due to the necessity to recreate the complex production ecosystem that currently exists in Asia.

“You build that (supply chain) in the U.S. with a fab in West Virginia and New Jersey. They’ll be $3,500 iPhones,” Ives told CNN on Wednesday. He also stated that it would cost Apple roughly $30 billion and three years to move just 10% of its supply chain to the U.S.

Since Trump took office, Apple’s shares have fallen over 10% due to tariff-related concerns impacting its extensive supply chain, which is heavily dependent on China and Taiwan. Approximately 90% of iPhones are assembled in China.

See Also: Tom Lee Predicts a Market Rebound After April 9 As ‘Absurd’ Tariffs Could Spur Potential Negotiations

Despite Apple’s announcement in February to invest $500 billion in the U.S. over the next four years to expand production outside China and avoid Trump’s tariffs, tech analysts concur that iPhone prices are likely to increase, even if supply chains remain in their current locations.

Why It Matters: In his latest Truth Social post, Trump lashed out at China, accusing the country of displaying “a lack of respect” toward the United States. He announced a sharp escalation in trade tensions, unveiling a 125% tariff on Chinese imports effective immediately. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he said.

Trump praised the more than 75 countries that, according to him, “have not, at my strong suggestion, retaliated in any way, shape, or form.” As a gesture of goodwill, he said these nations would receive a temporary 10% reciprocal tariff and a 90-day freeze on any new duties.

Meanwhile, the potential rise in iPhone prices has triggered a surge of customers flocking to Apple Stores to buy new devices before the hikes take effect.

Apple also reportedly planned to shift more of its iPhone production to India to mitigate the financial impact of Trump’s escalating tariffs on Chinese goods, potentially offsetting the projected price increase on its device.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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