Why Trump’s Idea of American-Made iPhones Is Unlikely to Happen

For US President Donald Trump, securing a domestically produced variant of the iPhone, arguably one of the most iconic tech products ever, would be a significant triumph. Acquiring such a goal would affirm his tariff strategy and his commitment to reinstating manufacturing jobs in America.

The administration believes this objective is within reach, especially with the proposed 145% tariffs on imports from China, which currently serves as Apple’s primary manufacturing base. Additionally, the company has pledged to invest $500 billion domestically over the next four years.

This week, the White House emphasized its position: Trump urges Apple to start manufacturing the device in the US. “If Apple believed the United States couldn’t handle it, they likely wouldn’t have invested that substantial amount,” White House Press Secretary Karoline Leavitt stated to reporters.

However, the truth is considerably different. Apple is not expected to shift iPhone production to the US anytime soon for several reasons, such as a lack of facilities and skilled labor essential for manufacturing the devices. Furthermore, the US isn’t equipped with the extensive supply chain, manufacturing capabilities, and engineering expertise that are currently concentrated in Asia.

The company is prioritizing India as its new source for iPhones intended for the US market. Apple’s partners are constructing the world’s second-largest iPhone factory there, thereby reducing the company’s dependency on China.

Apple’s largest FATP facilities — meaning final assembly, test, and pack-out — are vast entities, often likened to towns, housing several hundred thousand individuals, along with schools, gyms, medical centers, and dormitories. One notable iPhone factory in Zhengzhou has even earned the moniker “iPhone City.”

“Which city in America will halt everything to produce only iPhones? Millions of people are part of Apple’s supply chain in China,” remarked Matthew Moore, a startup co-founder and former Apple manufacturing engineer. “Boston has over 500,000 residents. The entire city would need to pause all activities and focus solely on assembling iPhones.”

A spokesperson for Apple, based in Cupertino, California, declined to provide a comment.

The development of new iPhones and other products still initiates at Apple’s laboratories in Silicon Valley. However, collaboration with Asia-based component suppliers and other partners commences long before a product reaches the market. Apple’s engineers and operations specialists collaborate for months or years with Foxconn Technology Group, Pegatron Corp, and various suppliers to tailor the assembly of new devices.

Alongside its command over manufacturing operations, China boasts millions of individuals skilled in machinery operation and the necessary expertise for iPhone assembly, which still relies heavily on manual labor.

“The engineering expertise required to operate a factory is not available in America,” Moore noted, highlighting the shortage of students pursuing STEM fields — science, technology, engineering, and math.

CEO Tim Cook explained the reliance on China during a 2017 Fortune magazine event, clarifying that it wasn’t due to low labor costs.

“China ceased being the low-cost labor country many years ago,” he asserted. “The reason lies in the skill level and the vast quantity of skills available in a single location.”

Cook mentioned that one could fill multiple football fields with advanced tooling engineers in China, whereas assembling a similar meeting in the US might struggle to occupy a single room.

A common counterargument is that Apple should leverage its substantial cash reserves to purchase extensive land in the US and construct a fully automated iPhone manufacturing plant to eliminate human-related issues in the production process.

Commerce Secretary Howard Lutnick echoed this perspective in a CBS interview, suggesting that “the army of millions and millions of human beings” will likely become automated.

However, supply chain experts and those with experience in Apple product manufacturing assert that this dream remains unrealistic for now. China can access lower-cost automation and has struggled to realize such ambitions.

The high pace of iPhone development also complicates automation, as processes can shift frequently. Additionally, much of the machinery necessary for production is manufactured in China.

Although the overall design of the iPhone has not significantly shifted in years, new materials and internal components — even the smallest design alterations — compel the company to reconfigure assembly lines overseas.

“You design the product, overhaul the factory, and then you only have six months to sell it,” remarked an anonymous source familiar with Apple’s supply chain. “The speed of change complicates automation significantly.”

While Apple has indeed diversified its iPhone production, reducing its output in China to below 90%, replicating the process in other nations remains challenging. Apple’s manufacturing centers located in Thailand, Vietnam, Malaysia, and Indonesia focus on other devices like Macs, AirPods, smartwatches, and iPads.

Currently, the most substantial effort to establish an iPhone manufacturing hub outside of China is underway in India, a process that has taken a decade to develop. Although Apple maintains a minor iPhone manufacturing line in Brazil, that operation produces less advanced models.

At present, the factories in India serve to help Apple mitigate the impact of Chinese tariffs. The company has already begun supplying its US distribution channels — its largest market — with iPhones manufactured in India, as reported by Bloomberg News. This country could potentially meet the demand for a significant number of units, as it is projected to produce around 35 million units annually.

Apple sells over 220 million iPhones each year and currently offers seven models, each available in various colors and storage capacities. This complexity in manufacturing underscores why the capabilities found in China are invaluable.

According to Moore, simpler products with fewer updates, such as iMacs and iPads, could be more feasible to produce domestically. Apple already manages the final assembly of Mac Pro desktops in Texas. However, most components assembled there are manufactured in China anyway. Moreover, Apple sells only thousands of those computers per year, with updates occurring over many years.

“iPhones represent a different challenge,” Moore stated.

© 2025 Bloomberg

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