According to Dan Ives, an analyst at Wedbush Securities, Apple’s iconic iPhone could soon become exorbitantly expensive. Due to the newly imposed tariffs by President Donald Trump, the prices might potentially double to $3,500. This warning comes as Trump’s 54% tariff on Chinese imports poses a threat to disrupt Apple’s supply chain, considering that nearly all iPhones are currently assembled in China.
Ives stated, “For U.S. consumers, the era of the $1,000 iPhone, which has been one of the world’s most accessible premium devices, could be coming to an end.” He emphasized that, despite political rhetoric, manufacturing iPhones domestically is financially unfeasible. “If consumers are willing to pay $3,500 for an iPhone, we could produce them in New Jersey or Texas. However, at the $1,000 price point, the economics simply don’t work out.”
In February, Apple announced a $500 billion investment in the U.S. in an attempt to stabilize costs. Nevertheless, Ives cautioned that shifting even 10% of its supply chain from Asia to the U.S. could take three years and cost $30 billion, with significant disruptions occurring along the way. He noted, “The reality is that the U.S. labor markets, tech infrastructure, and skilled workforce are not well – equipped to meet Apple’s complex manufacturing demands.”
Trump’s tariffs, which are part of a broader effort to bring manufacturing back to the U.S., have already strained global trade dynamics. Although Apple managed to secure exemptions during Trump’s first term, CEO Tim Cook has not yet obtained waivers this time around. Barton Crockett, an analyst at Rosenblatt Securities, remarked, “Apple’s treatment under these tariffs is surprisingly harsh, going against the expectations that the tech giant would be spared.”
Apple sells over 220 million iPhones annually, with key markets including the U.S., China, and Europe. The cheapest iPhone 16 currently retails for $799, but Ives predicts that prices could exceed $1,500 by this fall. If this prediction comes true, the price hike would put the iPhone on par with Apple’s Vision Pro headset, which faced challenges due to its $3,500 price tag.
While Apple may produce niche products like high – end Macs in the U.S., Ives stressed that the tariffs, in their current form, risk either severely hurting U.S. sales or forcing prices to “unimaginable levels.” For now, the affordability of the iPhone – and Apple’s market dominance – remains uncertain.
