Apple may need $30 billion, three years to relocate 10% of iPhone production to US

Apple would require at least three years and an estimated $30 billion to shift just 10% of its iPhone manufacturing and supply chain capacity from Asia to the United States, according to an analysis reported by the Financial Times.

The tech giant, which has spent decades expanding its production footprint across China and Southeast Asia, now faces increasing pressure to overhaul the way it designs, prices, and manufactures its flagship devices, Caliber.Az reports.

Speaking to FT, Erik Woodring, an analyst at Morgan Stanley, noted that Apple appears to be on the cusp of a significant strategic realignment.

According to data from TechInsights, the iPhone 16 is composed of 387 parts, including chips, batteries, wires, circuit boards, screens, and a variety of metal and plastic components. Apple’s latest supplier list, covering the 2023 fiscal year, shows that 187 companies accounted for 98% of its direct procurement spending—169 of them operating facilities in mainland China or Taiwan.

While assembling iPhones in the US is “technically feasible”, a spokesperson from Bank of America warned of significant uncertainties around tariffs on imported components. “If components are taxed, it becomes a massive headache,” the spokesperson told FT.

Despite these logistical and financial challenges, Apple’s share price has surged, helping it reclaim its title as the world’s most valuable company. According to market data cited by Russian agency Prime, Apple shares rose by 15.3% on April 9, increasing the firm’s market capitalisation to $2.99 trillion—up from $2.59 trillion the day before.

Rival Microsoft, which briefly held the top spot, slipped back to second place with a valuation of $2.9 trillion, despite its shares rising by over 10% during the same trading session.

Earlier this month, Apple’s valuation had dipped by 22% compared to the end of March, when it stood at $3.34 trillion. As of now, the company’s value remains around 10.5% lower than it was at the beginning of April.

By Aghakazim Guliyev