‘Fairy tale’
Analysts widely agree that shifting iPhone manufacturing to the United States is unrealistic and would require a fundamental overhaul of Apple’s business model — a process that could take years, if it’s possible at all.
According to Wedbush Securities estimates, about 90 percent of Apple’s iPhone production and assembly remains based in China despite some production shifts.
Reshoring iPhone production to the United States “is a fairy tale that is not feasible,” Wedbush Securities analyst Dan Ives said in a research note.
The constant pressure from the White House has taken a toll on Apple’s stock price, which has fallen more than 20 percent since Trump took office in January with his protectionist agenda.
Apple shares closed down 3.0 percent in New York on Friday.
Unlike during Trump’s first term, when Apple received exceptions from China-focused trade measures, the company has become a regular presidential target this time around.
Cook warned last month about the uncertain impact of threatened US tariffs on Chinese products, which at one point were hiked to 145 percent, despite temporary relief for high-end tech goods like smartphones.
He said Apple expects US tariffs to cost it $900 million in the current quarter.
“Prices of handsets look set to rise, given iPhones will end up being more expensive, if the threats turn into concrete trade policy,” said Susannah Streeter, an analyst at Hargreaves Lansdown.
“While die-hard fans will still be prepared to pay big bucks for Apple’s kit, it’ll be much harder for the middle-class masses who are already dealing with price hikes on other goods, from Nike trainers to toys sold in Walmart.”
Last week, the United States and China agreed to suspend sweeping tariffs on each other’s goods for 90 days, marking a temporary de-escalation in the trade war.