Apple unlikely to relocate iPhone production to U.S.

Despite the Trump administration's hopes that tariffs on Chinese goods would prompt Apple to produce iPhones in the U.S., analysts believe this is highly unlikely. Apple has built a complex supply chain in China over the past 18 years, and moving production stateside would require substantial investment and time, potentially driving the retail price of an iPhone from $1,000 to over $3,000. In contrast, Apple has ramped up production in India, chartering cargo flights to transport iPhones to the U.S. in response to lower tariffs on Indian imports. The company plans to increase production capacity in India by 20%, taking advantage of the 10% tariff on Indian goods compared to the 145% on Chinese imports. Analysts suggest that while Apple is investing in U.S. infrastructure, it is not focusing on domestic iPhone production, which remains reliant on overseas manufacturing. The disparity in tariff costs and the existing technological ecosystem in China complicate any potential shift to U.S. manufacturing.