Here’s how much it would cost “made in the US”

When President Barack Obama asked the late Apple CEO Steve Jobs about creating an iPhone in the US, Jobs did not expose words.

“These jobs don’t return,” jobs said for dinner with Obama In 2011.

US President and CEO Apple changed, but the ambitions of the iPhone “made in the US” remains.

Protecting your “mutual tariffs”, the White House This week is said President Donald Trump suggests that the US has labor and resources to create iPhones at the US CEO Tim Cook No one else in the technology campaign has come to support this claim, but analysts who follow Apple say that the idea of ​​an American iPhone is impossible at best and at best is very expensive.

Since this is heavily theoretical exercise, there is a wide range of assumptions about how much the All -American iPhone can cost.

Bank of American Securities Wamsi Mohan analyst said on Thursday that the iPhone 16 Pro, which is currently estimated at $ 1199, can increase 25% based on work costs. This would make about $ 1,500.

Dan -Is Wedbush tied $ 3,500 when the price of the US iPhone shortly after the tariff announcement last week, estimating that Apple will need to spend 30 billion dollars over three years to move 10% of its supply chain to the US

At the moment, Apple produces more than 80% of its products in China. Now these products receive a tax by 145%when they are imported in the US after this week has come into force on Trump.

Experts say “made in the US” iPhone will face serious problems ranging from finding and paying labor in the US to tariffs that Apple will lead to the import of details in the US for the final assembly.

There is a wide agreement among the analysts and observers of the industry that this is likely not to happen. Wall -Story for years doubted that Apple would make an American iPhone. “I don’t think it’s a thing,” Laura Martin with Nedham went to CNBC this week.

“It’s just not the reality that in terms of introducing tariffs that it will change production here. It’s a pie in the sky,” said Jeff Fieldhak, CounterPoint Research Research Director.

Apple develops its products in California, but manufacturers of contracts such as Foxconn, the main supplier of the company.

Even if Apple spent a great deal to force Foxconn or other partner to agree to build some iPhones in the US, it will take years to build plants and install a car, and there is no guarantee that the US trading policy cannot change so as to make the plant less useful.

The biggest problem with Uncle Sam iPhone is that the US does not have the same workforce as in China – although a large number of workers needed to create iPhones is one of the attractions for the Trump administration.

“Army of millions and millions of people who screw in small screws to make iPhones.

Foxconn creates iPhones and other Apple’s products Massive campuses that include hostels and shuttles. Workers often travel from nearby regions to work at the factory for a short period, and in the summer employment before new iPhones come out in the fall. A well -oiled system helps apple pumping more than 200 million iPhones a year.

In addition, Foxconn has been close attention for many years for many years, including in 2011, when the company installed networks around some of its buildings after a rash of workers. Supervision groups say the work of the Foxcon is grueling and that the workers are pressure to work overtime.

Despite the working conditions, Foxconn hired 50,000 additional workers its the largest factory in Henon To create enough iPhone before launching the last model, Chinese media reported last fall.

But Chinese workers pay much less than US workers. The hourly wages during the iPhone 16 overstretch amounted to 26 yuan, or $ 3.63, with a $ 7,500 bonus, or about $ 1,000, according to South China Morning Post. For comparison, the minimum wage in California is $ 16.50 per hour.

Mahan Bank of America “Mahan” estimates that the cost of assembling and testing iPhone in the US will come for $ 200 per iPhone, which is in China compared to $ 40.

Apple’s CEO also said another question is that US workers do not have the right skills. In an interview with 2017, Cook stated that there were not enough engineers working on them in the US and set up machines that take complex Apple designs that come as computer files and turn them into physical objects.

“The reason is that the amount of skill in one place and the type of skills,” Cook – Note Asked at the conference why Apple does so much production in China.

Cook said Cook.

The most recent efforts to move Foxconn to the United States to become a failure.

Trump announced investment in Foxconn for $ 10 billion for plants in Wisconsin In 2017. Apple has never been officially tied to the location of Wisconsin Foxconn but it didn’t stop Trump in effort Apple will build three “big beautiful plants” in the US

Foxconn has changed plans several times on what to produce a Wisconsin plant, but as a result it stopped on the product Face masks during pandemic – Nothing is related to electronics. The Foxconn Wisconsin plant was located as providing 13,000 jobs, but it created only 1454 jobs.

During the pandemic plans for the factory were abandoned and most of the object remains non -built.

Apple worked with Foxconn in 2011 to expand the iPhone production to Brazil To avoid great import duties in this country. The plant is still working and today will produce iPhone 16 models to help Apple bypass us, reports The latest Brazilian media reports.

But even after the $ 12 billion factory operated, most components were still imported from Asia, and in 2015, four years after the plant was announced, iPhones made in Brazil According to Reuters.

However, the recent efforts of Taiwan Semiconductor Manufacturing Co., Chief Apple chips, have succeeded. Now TSMC makes a small number of advanced chips At the new factory in Arizonaand Apple – a devoted customer.

Even if the iPhones could be assembled in America, most of what goes to the iPhone comes from the world, all of them have received tariffs.

The vast majority of parts in the iPhone are made in Asia. The processor is produced by TSMC in Taiwan, the display is made by South Korean companies such as LG or Samsung, and most other components are manufactured in China.

According to Mohan of America Securities, Apple will face tariffs on most of these parts unless it can provide a refusal for individual parts. The semiconductors, which are among the most valuable parts in the iPhone, are currently released from tariffs.

Trump put a 90-day pause on most of his tariffs on Wednesday, but when the pause is over, Yankees, a production iPhone 16 Pro Max, can increase the price by 91% thanks to tariffs and increase labor costs, Mohan wrote.

“Although it is possible to move the final assembly to the US, the movement of the entire iPhone supply chain would be a much larger endeavor and probably take many years if possible,” Mohan wrote.

Despite the fact that the jobs closed the idea that stands out with America’s iPhone with Obama, Cook did not accept the same non -food approach.

Instead Cook brought Apple’s strategy to Interact with Trumpincluding visiting his inauguration in January. Apple also announced that it will spend $ 500 billion in the US, including some AI server production in Houston. Trump regularly refers to investment with approval.

During the first Trump administration, Cook strategy worked.

Despite the fact that Trump spoke about the stars and strips of iPhones and apples in the US, the technology company was able to provide temporary release for many of its products made in China. This meant that Apple should not pay tariffs on important devices such as iPhone.

The magic offensive during the first term Trump ended in the fall of 2019 If Apple has extended the assembly of $ 3,000 Mac Pro on Flex Factory outside Austin, Texas. Trump visited the plant with a cook.

Before Apple get to red, white and blue iPhone, it can create some products in the US with a smaller volume or AK

“Given that we know that the Trump administration is ready to negotiate, we will not be surprised to see that Apple owes some production in the US (HomePod? Airtags?), Similarly, its commitment in September 2019 for the production of the new Mac Pro in Austin, Texas, to try and win the exception.”

Apple refused to comment.