iPhone made in the US—a pipeline dream or an inevitable reality?

Phone Arena

2 days ago

Would you like to own a US-made iPhone? If the answer is yes, then this article is for you. You might not be a minority, either. The topic often pops up on forums all around the internet, including Apple's own discussion boards.
There's nothing wrong with a desire to own something local and high quality,, but getting a "Made in USA" label on future iPhones might not be that easy. Where are iPhones made?
The iPhone components are manufactured globally including countries such as Japan, South Korea, and Taiwan. They are then shipped to the three final assembly locations, almost like a synchronized dance.
And this is nothing new — even the original iPhone back in 2007 was made in Foxconn factories in the Chinese city of Zhengzhou.
So, where does this "Made in the US" notion come from? Make America Great Again
The "Made in the US" iPhone idea stems from Donald Trump's political campaign during his presidential campaigns in 2016 and in 2024.
Curiously enough, similar slogans have been used by Ronald Reagan and Bill Clinton in their presidential rallies back in 1980 and 1992, respectively. But I digress.
Part of Trump's vision was and still is bringing manufacturing back to the US in a bid to stimulate the local economy and cut the dependence on foreign economies, China being one particular example. Trump's tariffs and Apple's involvement
Even though some political analysts thought of the idea as naive, in the past couple of years, Trump backed it up with some real-life actions.
$600 billion sounds like a lot, and it's understandable how people might think that such a pledge could result in, let's say, the iPhone 18 being partially or fully made in the US, but that's far from the truth. How much would a "Made in USA" iPhone cost?
Why the insane price? There are several factors at play. The first, and one of the most important contributors to the equation, is labor cost. Even the most conservative estimates place the cost of iPhone assembly in the US at $200 per unit, compared to $40 in China.
Second, there's a lack of qualified workforce in the US. Back in 2017, Tim Cook said it himself: While China maintains entire "football-field-sized" gatherings of such talent, the US capacity of engineers and assembly experts could barely fill a room. People would need to be trained, and this takes time and a lot of resources.
Next is the supply chain. I already mentioned how it's an international affair, shipping components from all parts of the world—displays from South Korea, chips from Taiwan, and camera modules from Japan.
Moving iPhone production to the US would require the whole supply chain to be reorganized, and this will most likely lead to inefficiencies and further impact the retail price. The Brazil-made iPhone 16e as an interesting case study
In an attempt to diversify its production portfolio, Apple started using Foxconn's manufacturing facility in Sao Paolo, Brazil, for the iPhone 16e assembly.
It's hard to isolate the impact on the price as iPhones generally cost more in Brazil, due to various taxes and import policies. But even as a wild theory, there are hints supporting the higher manufacturing cost in countries other than China, India and Vietnam.
Now, when we factor in the much lower tariff burden compared to China, the actual price of the iPhone 16e was estimated to be around $670, an improvement when compared to other iPhone models, imported into the country, but still more expensive than a Chinese-made iPhone 16e .
I should also mention the fact that the Foxconn factory in Brazil has been operational since 2011, and labor cost in the country is nowhere near US standards.
This is a complicated matter, but one could argue that the Brazil-made iPhone 16e barely makes economical sense, even when the cost of labor is slightly higher than what China can offer.
And when you move the production to the US where the cost of labor is ten times more expensive, things will get exponentially worse. Will we ever have a "Made in USA" iPhone then?
I think it's highly unlikely, especially in the short to mid-term. Even though there are plans for component factories in the US, including a Kentucky-based Corning Gorilla Glass factory and a TSMC plant in Arizona, a fully US-made iPhone remains a pipeline dream.
It's not completely out of the question, but it would require consistent policies pushed by the US Administration, a significant decrease in the US labor cost, and years of building a supply chain and infrastructure.
At the end of the day, for me personally, the origin of the gadget I use doesn't matter, as long as the quality is there. It's how a free economy works; companies will try to minimize costs and maximize profit.
What do you think? Would you buy a US-made iPhone if it cost $3,500 or you're okay with a more globalized production and assembly? Vote in the poll and share your thoughts in the comment section below.