Bank of America believes Apple faces major challenges in manufacturing iPhones entirely inside the United States. The financial firm warns that completely shifting iPhone production stateside would require years of complex work. Apple might easily hire American workers but struggles with sourcing intricate phone components globally.
The bank predicts significant obstacles preventing a complete US-based manufacturing process. Most iPhone sub-assemblies would still need manufacturing elsewhere and potential importation. Without special tariff waivers, Apple could see smartphone prices skyrocket potentially 25% or more, depending on labor and trade restrictions.
Investor confidence wavered after the White House announced 104% tariffs on Chinese imports. Apple's stock price tumbled nearly 5%, causing the company to lose its world's most valuable company to Microsoft. The unexpected market shift prompted Bank of America to analyze Apple's potential manufacturing strategies.
Financial analysts maintain a $250 price target and recommend buying Apple shares despite manufacturing challenges. The bank remains optimistic about Apple's stable cash flows and potential artificial intelligence features for future iPhones. Complicated global supply chains make immediate US-based production virtually impossible.
Potential price increases could dramatically impact smartphone affordability if Apple attempts full domestic manufacturing. Tariff complexities and international component sourcing create significant barriers to rapid production changes. Bank of America suggests Apple will likely continue its current manufacturing approach for the foreseeable future.
The bank predicts significant obstacles preventing a complete US-based manufacturing process. Most iPhone sub-assemblies would still need manufacturing elsewhere and potential importation. Without special tariff waivers, Apple could see smartphone prices skyrocket potentially 25% or more, depending on labor and trade restrictions.
Investor confidence wavered after the White House announced 104% tariffs on Chinese imports. Apple's stock price tumbled nearly 5%, causing the company to lose its world's most valuable company to Microsoft. The unexpected market shift prompted Bank of America to analyze Apple's potential manufacturing strategies.
Financial analysts maintain a $250 price target and recommend buying Apple shares despite manufacturing challenges. The bank remains optimistic about Apple's stable cash flows and potential artificial intelligence features for future iPhones. Complicated global supply chains make immediate US-based production virtually impossible.
Potential price increases could dramatically impact smartphone affordability if Apple attempts full domestic manufacturing. Tariff complexities and international component sourcing create significant barriers to rapid production changes. Bank of America suggests Apple will likely continue its current manufacturing approach for the foreseeable future.
