Americans Expect iPhone Upgrades Despite Tariff Challenges

Amid escalating U.S.-China trade tensions and steep tariffs imposed by the Trump administration, Apple faces significant challenges in maintaining its global supply chain, with estimates suggesting that domestic iPhone production could nearly double retail prices due to higher labor and component costs. Despite these economic pressures and the potential for iPhones to exceed $1,400 if produced in the U.S., American consumer demand remains robust: a Morgan Stanley survey found a record 51% of current U.S. iPhone users plan to upgrade within the next year, with strong interest in new features like Apple Intelligence and foldable designs. While some sectors, such as the auto industry, are lobbying for the same tariff exemptions granted to consumer electronics, arguing that abrupt changes could devastate supply chains and lead to layoffs, Apple has so far benefited from a temporary exemption for smartphones. The persistent complexity of global manufacturing and the high cost of reshoring highlight the limits of economic nationalism in the technology sector. Nonetheless, Apple users appear willing to pay for innovation, with 42% considering Apple Intelligence very important for their next device. These developments underscore the tension between political efforts to revamp trade policy and the practical realities of high-tech manufacturing and consumer demand.