Why iPhones Won’t Be Made in America Anytime Soon

As the U.S. administration under Donald Trump intensifies calls for Apple to bring iPhone production back to American soil, an in-depth article by the Financial Times explains why such a move would be extremely challenging, costly, and slow.

Despite political pressure to shift manufacturing out of China, the deep-rooted and highly specialized global supply chain behind every iPhone makes large-scale production in the U.S. unlikely in the near future.

Historically, efforts to manufacture smartphones in the U.S. have faced serious setbacks. A prime example is Motorola’s 2013 experiment in Fort Worth, Texas, where the company attempted to produce smartphones domestically. That plant closed within a year, overwhelmed by high costs and underwhelming sales.

At the heart of the challenge is not just labor costs, but the intricate web of suppliers and manufacturers concentrated across Asia. Over decades, Apple has cultivated a network where hundreds of specialized suppliers — from TSMC to Foxconn — work seamlessly together. The proximity of these suppliers to final assembly plants in China enables faster communication, rapid innovation, and lower costs.

According to research firm TechInsights, if Apple were to fully assemble iPhones in the U.S., the price per device could skyrocket to around $3,500. Currently, Apple enjoys about a 36% profit margin on models like the iPhone 16 Pro, thanks to tight cost controls and efficient supply chain logistics — efficiencies that would be lost with a U.S.-based production model.

Moreover, many critical components for iPhones, such as advanced chips, OLED displays, and even specialized screws, are produced in Asia. For example, Taiwan’s TSMC supplies Apple’s processors, and companies like Samsung and LG produce the OLED screens.

Efforts to diversify away from China are underway. Apple has expanded its assembly operations in India and Vietnam, responding to both geopolitical tensions and the need for supply chain resilience.

However, fully moving manufacturing operations — especially for critical components — would require not just years but potentially decades of investment in U.S. infrastructure, workforce training, and automation technology. Compounding the challenge, the U.S. still relies heavily on China for rare earth materials essential to electronics production, giving Beijing strategic leverage.