this post was submitted on 09 Apr 2025
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United States | News & Politics
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The most expensive iPhone retails for $1200, with a manufacturing price of ~$500 and net profit of ~$700.
So if an iPhone costs $3500 to make domestically, then Apple would need to sell it for $4200 to make the same profit. But even if Trump levies his 100% tariff on China, it would still be significantly cheaper for Apple to make iPhones in China and pay 2x the manufacturing costs ($1000), add the same $700 profit, and just charge $1700 for the same model.
So in the end no new domestic manufacturing jobs are made, Apple, an American company, loses business because less people would buy at a higher price, and American consumers get shafted.
I think your estimate is flawed. The article does state $3500, but that's consumer cost. The profit margin would already be baked into that. Barring a democracy-ending chain of events in the US, Apple wouldn't even have time to move manufacturing to the US in a meaningful enough way to get to this price point before the end of 47's term. $2000 iPhones with baked in consumer taxes (tariffs)? Absolutely, though.
More likely the cost is only $1500 and the price to the consumer would be 3500, because Apple would absolutely fuck the consumer like every other corporation. At best this might be an absolute profit projection and that cost is 2800 at the 3500 price point