The Trump administration believes Apple (AAPL) could shift its global iPhone manufacturing base to the U.S. While the move aligns with the president’s “America First” agenda, analysts remain skeptical, citing high costs, supply chain disruptions, and logistical challenges.
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AAPL Stock in the Crosshairs
Apple, which still manufactures most of its iPhones in China, saw its stock butchered following Trump’s tariff announcement. Meanwhile, Apple faces added vulnerability as its manufacturing operations in India, Vietnam, and Thailand are also subject to new U.S. tariffs.
Over the past five trading sessions, AAPL stock has plunged 22% as investors grow increasingly concerned that Trump’s tariffs will drive iPhone prices higher. On Tuesday, AAPL stock dropped nearly 5% after the White House confirmed 104% tariffs on Chinese imports.
For now, Apple is reportedly boosting iPhone shipments from India to the U.S. as a temporary workaround to avoid steep tariffs on Chinese imports.
Needham Analyst Doubts Feasibility of U.S.-Built iPhones
Needham analyst Laura Martin isn’t convinced by the idea of iPhones being made in the U.S. Speaking on CNBC, Martin dismissed the White House’s suggestion, saying, “I don’t think that’s a thing.” She warned that shifting iPhone production to the U.S. would cause Apple’s costs to skyrocket.
Martin also emphasized that relocating Apple’s supply chain to the U.S. would be a years-long process if it’s even possible. Moreover, many supply chain experts believe full-scale U.S. iPhone production is simply unrealistic. Overall, Martin said Trump’s tariffs could drive Apple’s production costs up by roughly 50%.
Martin isn’t alone. Wedbush analyst Dan Ives echoed the concern, estimating a U.S.-made iPhone could cost as much as $3,500. Earlier this week, Ives slashed his price target on AAPL stock from $352 to $250, citing the company’s high exposure to tariff risks.
Is AAPL Stock a Buy?
On TipRanks, AAPL stock has a consensus Moderate Buy rating among 33 Wall Street analysts. That rating is based on 17 Buy, 11 Hold, and five Sell recommendations assigned in the last three months. The average AAPL price target of $243.72 implies a 41.35% upside from current levels.