How Much Would an iPhone Cost if it was Manufactured in the United States?

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During Trump’s campaign, he suggested that his administration could help Apple bring their device manufacturing efforts back to the United States.

Last week, Nikkei reported that Apple’s iPhone assembler Foxconn has been looking into the possibility of moving to the United States. The report notes that if this were to happen, the cost of manufacturing an iPhone would more than double.

Marketplace also looked into the extra costs Apple would incur if they brought iPhone manufacturing to the United States. If all the components of the iPhone were made in the United States, the manufacturing costs could increase by about $600, which means that the retail cost of an iPhone could increase to $2,000.

In comparison, analysis conducted by the MIT Technology Review found that the cost of making an iPhone in the United States will rise only five percent.

The main problem in bringing iPhone manufacturing to the United States is that the infrastructure to build the electronic components needed was never in the United States to begin with. Therefore, Apple would have to build the entire manufacturing network from scratch, which would end up costing the company even more money in the long run.

[via Business Insider]

A software engineer with a passion for creation and innovation using technology. To learn more about me, check out my personal website, which contains links to my projects. Email: nick@iphoneincanada.ca

  • razorgoto

    Found two typos

    In comparison, analysis conducted *my* the MIT Technology Review found

    Should be “by”.

    the infrastructure to build the electronic components needed was never in the United States to *being* with.

    Should be “begin”

  • Chrome262

    There is nothing wrong with them importing the components in and then assembling here in NA, Also, part of the statement where they would have to make a new manufacturing network here would cost more in the long run is false. Initially would cost more, but in the long run would cost less. Now whether it would be cheaper then China, thats different

  • Here’s your Gold Star *

  • Alberta Bound

    iPhones would cost more if manufactured in the U.S.?

    If my memory serves me, many, many years ago people were able to buy cheaper vehicles from Asia over North American made vehicles. Where did that go?

    There is no loyalty with most consumers. They will go where the best price is.

    Trump will start a trade war with China which will cost jobs in the U.S. and Canada will be the happy benefactor of cheaper goods here than in the U.S.

  • jay

    for almost no company it would make sense to manufacturer anything in north america. labor law, union and qulity is just to much

  • sully54

    not sure where you’re getting your information but the infrastructure is simply none existent in the US to produce the iPhone at the current scale, let alone other apple products or other companies’ products for that matter.

    and the fact that the cost for companies would be a lot more up front is a huge red flag since that would mean that the increase in manufacturing costs gets passed along to the consumer. This would cause an inflation, the likes of which we have never seen before.

    this is simple economics.

  • CMfly

    Guesses:
    – If ever they did this the phones would be assembled by robots and thus little job creation.
    – They would only make enough to supply the US market (and possibly Canada) and continue to make the rest wherever is the cheapest.

  • m Arch Tom’s on Bar N Ass

    the whole thing about bringing manufacturing back to US ( or even EU ) is a nonsense. on top of costs boost for actually manufacturing goods in western and capitalistic societies, you need to consider a hefty rise on insurance policy fees, either with public institutions, ( communist-like states/nations ) or with private insurers ( real capitalist system ), in addition to new or revised taxation on top of corporate-tax and to compensate for damages, when manufacturing tasks/activities have an impact on environmental balance, ( waste material ), undesirable tasks and activities then when considering preservation of the environment. ( pollution )

  • noWeedPlease

    If the iPhone was assembled in the USA, most of the iPhones would be defective due to marijuana usage by the assemblers.

  • Chrome262

    they already have the MacBook in California, but it all depends on what passes for manufacturing. if its mostly assembly then they could easily do it, and it wouldn’t cost as much, although MacBooks are expensive, but they have always been. If its a percentage of the parts made in the US, then it would be an issue. But I don’t really see it becoming one, as you said its not going to be practical at this point.