A tech industry analyst has warned that the ongoing tariff war started by President Donald Trump could have a far-reaching impact on tech consumers and multinational companies like Apple, with iPhone prices expected to increase three times.
According to Global Head of Technology Research at Wedbush Securities, Dan Ives, the idea of Apple shifting its entire supply chain to the U.S. is economically impractical.
In a CNN interview, Ives warned that an iPhone assembled entirely in the United States could retail for as much as $3,500, compared to the current price of around $1,000.
“You build that supply chain in the U.S. with fabrication plants in West Virginia or New Jersey, and you’re looking at $3,500 iPhones,” Ives explained, referencing the complex ecosystem of high-tech chip manufacturing that has been developed over decades in Asia.
Cost of movement
Trump’s tariffs, now in full effect, are expected to drive up the cost of goods such as electronics, clothing, and household appliances.
While the administration insists the move will bring manufacturing back to the U.S., the economic costs may be borne most heavily by American consumers and global supply chains.
Ives estimates it would cost Apple $30 billion and at least three years just to move 10% of its supply chain back to the U.S. — a move that could severely impact margins and product timelines.
- Apple, which has long relied on Asian manufacturing hubs, is seen as one of the most exposed companies in the U.S.-China trade war.
- Approximately 90% of iPhones are assembled in China, with key components like processors and displays sourced from Taiwan and South Korea.
- Apple’s stock has fallen by 25% since Trump’s inauguration, as investors worry about cost inflation, supply chain disruption, and a potential slowdown in global demand.
“This is economic Armageddon for the tech industry. No company is more caught up in this Category 5 tariff storm than Apple,” Ives said.
Apple eyes alternatives: India, Brazil in focus
Apple has already begun efforts to diversify production. In 2024, the company announced a $500 billion investment in U.S. operations, aimed at reducing exposure to China. Additionally, India and Brazil have emerged as alternative manufacturing hubs.
While these countries still face tariffs, 26% for India, 10% for Brazil, they offer more stability compared to the increasingly volatile U.S.-China trade route.
Still, capacity remains a challenge. Brazil, despite its lower tariffs, lacks the scale needed to replace China’s vast manufacturing infrastructure.
What this means for Nigeria and emerging markets
While Nigeria may not be directly involved in iPhone manufacturing, the country, like many emerging markets, will feel the ripple effects of this evolving trade war.
Nigeria, a major importer of electronic devices and smartphones, could see significant price hikes on Apple products and other U.S.-linked gadgets, straining already weak consumer purchasing power.
For local retailers and telcos who bundle iPhones with service packages, rising costs could lead to reduced sales volumes and lower margins.
