š± The $3,500 iPhone? Why āMade in the USAā Is More Fantasy Than Factory
Where political slogans meet market math.
Trump says we can build iPhones in America.
Apple says... nothing.
Wall Street says: Yāall sure about that?
After the tariff chaos of early April, the White House floated the idea of a āMade in the USAā iPhone. Sounds patriotic. But experts say the math just doesnāt compute ā unless you're ready to drop $3,500 for a new iPhone.
š© Letās Talk Costs:
šŗšø U.S. labor cost to assemble/test an iPhone: ~$200
šØš³ China labor cost: ~$40
šŗšø Minimum wage in California: $16.50/hr
šØš³ Average iPhone factory pay: ~$3.63/hr
According to Bank of America, just moving the iPhone 16 Proās labor to the U.S. could raise the price 25%.
Wedbush goes further: a fully American-made iPhone could cost $3,500+, assuming $30B in supply chain shifts.
š Why Apple Canāt Just āBring Jobs Backā
China has the scale. Foxconn builds 200M+ iPhones a year with dorms, shuttles, and surge hiring.
The U.S. doesnāt have the skills. Tooling engineers ā the ones who turn blueprints into product ā are rare in America.
Infrastructure gap. In China, the entire supply chain lives next door. In the U.S.? It barely exists.
āIn China, you can fill football fields with tooling engineers,ā Tim Cook once said.
āIn the U.S., maybe a room.ā
š§± The Political Theater
Trump's pushing for onshoring. Appleās dodging with charm.
Apple already spends $500B+ in the U.S., including AI servers in Houston.
Cook attended Trumpās inauguration and gave him a plant tour in 2019.
The result? Temporary tariff exemptions and minimal manufacturing on U.S. soil.
Donāt be surprised if Apple promises to make AirTags or HomePods in Texas to score more exemptions ā just like it did with the $3,000 Mac Pro in 2019.
š Global Parts, Global Problems
Even if you assemble the iPhone in the U.S., most of its parts still come from Asia:
Chips: Taiwan (TSMC)
Displays: South Korea (LG, Samsung)
Camera, glass, battery: China
All those imported parts? Still tariff targets.
š¬ Staten Take:
āMade in Americaā sounds great until it slaps a 3x price tag on your phone.
Appleās play isnāt onshoring ā itās diversifying (India, Vietnam, Brazil).
The only thing Trumpās tariff pressure might produce? A HomePod with a flag on it.
Bottom Line:
The U.S. makes iPhones possible ā through design, innovation, and brand. But as of 2025? We still donāt make them ā and building that from scratch isnāt happening anytime soon.
Until next time,
ā The Bandicoots

