"Trump slapped a 54 percent tariff on all Chinese goods imported into the US on Wednesday. Almost all iPhones are assembled in China. 'For US consumers, the reality of a $1,000 iPhone being one of the best-made consumer products on the planet would disappear,' said Ives. 'It speaks to our point that if consumers want a $3,500 iPhone, we should make them in New Jersey or Texas or another state....the concept of making iPhones in the US is a non-starter in our view at $1,000.'
" However, Ives said that 'is it would take three years and $30 billion dollars in our estimation to move even 10 percent of its supply chain from Asia to the USwith major disruption in the process.' Trump imposed a series of sweeping tariffs on countries around the world that could drastically alter the landscape of global trade, and consumer goods like iPhones could be among the hardest hit."
'Making Apple products and iPhones in the US sounds great behind the microphones in the 202 area code...but in reality they are a fantasy tale that in our view will never happen.....and if they are produced in the US will be 2x-3x more expensive,' Ives said in a Thursday email. 'It's the reality of the US labor market, developing and building a tech factory, chips being in Asia, and having the right skilled workers and engineers to operate a complex manufacturing arm such as Apple."
