Apple remains resistant to political pressure and tariff threats to shift iPhone manufacturing back into the US any time soon, according to analysts and industry experts. They point out a variety of economic, logistical, and labor issues which render domestic production of iPhones impractical.
President Donald Trump recently intensified calls for Apple to manufacture iPhones domestically, threatening a 25% tariff on those not produced locally. While Apple has pledged significant investments here over four years – such as its $500 billion commitment – they generally focus on areas like data centers and research facilities, rather than assembly lines for phones. The Economic Times +10, Bloomberg +10, The Guardian +10 and Vanity Fair all support his view, with The Economic Times having posted up +10 score with respect to them all (but Vanity Fair with +1). Vanity Fair with 1 and AP News have reported on this matter recently with regards to Trump’s comment that any non-US phone producers such as Apple should do just this if produced domestically by phone makers such as Apple Inc (the companies).
One of the primary barriers to domestic manufacturing is cost. Producing iPhones here could increase retail prices to over $3,500 compared to current average of around $1,200 due to higher labor costs and lack of an established supply chain infrastructure in America.
Apple is heavily invested in Asia, particularly China and India, for its manufacturing ecosystem. They rely on suppliers like Foxconn and Pegatron that offer scaleability and efficiency unrivaled by U.S. facilities; shifting this complex supply chain would take years of investment and development before being ready for deployment here. Axios mes These facts were reported by Axios.
Labor availability is another significant obstacle to iPhone assembly in the U.S. Tim Cook has highlighted this shortage, noting how countries like China provide large, trained workforces that are ready to meet high-volume production.
Apple has gradually been increasing production in India in response to geopolitical tensions and to diversify its manufacturing base, including increasing exports from there to the U.S. by 76% year-on-year compared with April 2025 – and totaled 3 million units shipped there in April. But this shift does not come without challenges: India currently lacks sufficient manufacturing capacity to meet U.S. demand of approximately 20 million units quarterly – analysts predict India won’t fully satisfy it until at least 2026.
Given these complexities, many experts believe Apple will choose to absorb tariff costs rather than undertake the complex undertaking of moving iPhone production from China to America. By taking this route, they believe they will maintain existing supply chain efficiencies while gradually diversifying to mitigate geopolitical risks. AP News +3 Wikipedia +3 Barron’s
At this stage, political pressures aside, economic and logistical considerations make domestic iPhone manufacturing in the U.S. unlikely in the near future.