$3,500 American Made IPhone May Slash Apple Sales By $153 Billion

Core Viewpoint - Apple's iPhone faces significant challenges due to potential production shifts to the U.S. and rising costs, which could lead to a drastic increase in prices and a substantial loss in revenue if consumers switch to competitors like Samsung [3][4][5][16]. Group 1: Production and Cost Implications - Apple has primarily manufactured iPhones in China, with some production recently moved to India to mitigate tariffs [6][8]. - A shift to U.S. production could require an investment of $30 billion over three years to produce only 10% of iPhones domestically, leading to a potential price increase to $3,500 for consumers [4][16]. - The all-in cost of producing an iPhone in the U.S. could rise significantly, with estimates suggesting costs could be five times higher than in China [13][15]. Group 2: Revenue Impact and Consumer Behavior - If iPhone prices were to triple, Apple could face a revenue loss of up to $153 billion, assuming 70% of customers switch to lower-priced alternatives [5][17]. - In a best-case scenario, where only 10% to 20% of consumers switch, the revenue loss could still range between $23.6 billion and $47.2 billion [19]. - Apple's iPhone sales in 2024 are projected at 232 million units, with an average price of $1,018, totaling $236.2 billion in revenue [18].