Cost estimates suggest manufacturing and assembling an iPhone entirely in the United States would push retail prices well beyond current norms, potentially reaching up to USD 3,500. Analysts point to steep labour costs, the absence of a mature electronics supply chain, and existing tariffs as primary drivers behind the inflation.
Bill of materials for an iPhone 16 Pro is around USD 550, with assembly and testing adding approximately USD 30 when done in China. By contrast, shifting assembly to U.S. workers would raise that figure to more than USD 300, with some estimates placing it at USD 200 for mere screw-fastening tasks—versus USD 40 in China—dramatically boosting total manufacturing cost. Tariffs on Chinese-made goods could further inflate costs thanks to import duties, possibly increasing the bill by hundreds per unit.
Experts underscore that Apple’s global supply network—spanning over 40 nations—is finely tuned for affordability and speed. Establishing such infrastructure on U.S. soil would demand years of capital expenditure and billions in investment. Wedbush analyst Dan Ives estimates the cost of U.S. labour and facilities might alone elevate iPhone prices from USD 1,000 to between USD 2,000 and USD 3,500.
The issue of automation adds complexity. The current iPhone design prioritises aesthetic minimalism over robustness for robotic assembly or ease of repair. A deeper chassis and redesigned internals could facilitate automation and servicing, but would compromise the sleek finish that has defined Jony Ive’s design philosophy. Critics argue this emphasis on form—what some call “the curse of Jony Ive”—limits the product’s adaptability for automated factories. Ive himself has acknowledged unintended societal consequences of smartphone design, placing user experience above modularity.
A partial move to the U.S. is already in motion: Apple has expanded some manufacturing in India and Vietnam, largely to navigate tariff constraints and reduce over-reliance on China. But even such incremental reshoring requires development of a domestic ecosystem capable of producing key components—display panels, camera modules, semiconductors—which remains years away.
Washington’s political pressure—most notably from former president Donald Trump—has emphasised tariffs and demands for domestic production. Commerce Secretary Howard Lutnick stated that tasks like screwing in components “are going to come to America,” but analysts caution this will deliver little impact without fixing a lack of skilled labour and tooling capability.
Semiconductor production in the U.S. has received high-level investment under bipartisan initiatives, but silicon fabrication remains distinct from the fine-pitch assembly of shared circuit boards requiring precision robotics or manual dexterity. Much of the assembly workforce that supports Apple in China comprises flexible labour cost units with decades of specialised training—resources U.S. plants cannot rival yet.
Automation presents a theoretical remedy. However, analysts stress that Apple’s current design resists robotic handling, with tolerances too tight for factory automation without significant redesign. A redesign to enable robots and simplify maintenance would erode the device’s elegant form and compactness, clashing with Ive’s legacy aesthetic.
Industry insiders say the only viable near-term approach would be limited-run, luxury-grade iPhones—likely sold at prices far above USD 3,000—to early adopters or government contracts. Scaling up to mass production at lower costs would require prolonged investment, new engineering for manufacturability, and training thousands of technicians and robotics engineers.
The implications stretch beyond consumer wallets. A U.S.-built iPhone priced at USD 3,500 would force consumers to rethink upgrade cycles, accelerate device lifespans and drive demand for repairable or modular alternatives. Meanwhile, Apple would have to choose between absorbing costs—pressuring profit margins—or passing them on to customers and likely seeing demand erosion.
As it stands, the sleek, closed-box design of the iPhone keeps it locked into global supply chains optimised for overseas assembly. Unless Apple is willing to embrace deeper structural changes—both design-wise and operationally—a fully U.S.-built model may remain a high-priced novelty rather than a mainstream contender.
