BofA Reports iPhone Costs May Surge 90% If U.S. Production Begins

An analysis by Bank of America reveals that if Apple moves iPhone production to the U.S., costs could rise significantly, with estimates suggesting a potential increase of over 90% due to tariffs on imported parts and higher labor costs. While relocating final assembly to America might be feasible, the complete supply chain shift would be a complex and lengthy process. Analysts caution that even a 25% increase in costs could occur purely from domestic labor expenses. The ongoing trade tensions and tariffs imposed by the Trump administration are intensifying concerns about Apple's profitability, as the company has already seen its market capitalization decline significantly. Despite these challenges, Apple is attempting to diversify its manufacturing in countries like India and Vietnam. However, analysts maintain a generally positive outlook on the stock, with a moderate buy consensus among market watchers.