Analyst says Apple should charge $100 to $200 more for a special iPhone model made in the U.S.



Apple, its suppliers, and the companies it hires to assemble the iPhone are all talking about finding a way to produce the handset in the U.S. to appease President Donald Trump. The problem is that Apple will have to pay more for U.S. based supplies, components and labor. That will force the tech titan to do one of two things; raise prices to maintain current margins, or make less money on handset sales.

A Wall Street analyst by the name of Brian White says that he has a solution. White, who works for Drexel Hamilton, says that Apple should produce a special "Made in America" version of the iPhone. This special model would be priced with a $100 to $200 surcharge allowing Apple to recoup some, or all, of the additional costs it would take to build the device in the U.S. White said that he believes there would be a market in the states for such a device.

Trump has said that he would increase tariffs by as much as 45% on overseas trade. One government controlled newspaper in China said following Trump's election, that such a tariff would put a crimp in Chinese iPhone sales.

Would you pay extra for a version of the Apple iPhone made in the U.S.A.?

source: CNBC

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73 Comments

1. aman5mathur

Posts: 241; Member since: Mar 28, 2014

Not sure to laugh or to cry. Or lets just cry out lauging. Lol

27. Unordinary unregistered

Not sure to laugh or laugh at the amount of people who are spoon fed PA's analyst stories. El oh el.

28. michaelny2001

Posts: 328; Member since: Aug 01, 2012

ahahah felt the sam thing. If Apple does that, smart people will buy last year's model for hundreds less. or switch to a nice android for just 399 or less.

37. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

I don't think the tax is restricted to Apple only. Most likely, all China made good such as smart phone would be hit. And don't worry the money received from tax would be privatized. By now you guy should be quite familiar with US politician game plan.

56. Khyron

Posts: 397; Member since: Sep 28, 2015

#200 more for a mid range Phone Crazy

2. Sidewinder

Posts: 515; Member since: Jan 15, 2015

So this will be the IPhone X patriot edition. All yours for a premium of $1200

4. xondk

Posts: 1904; Member since: Mar 25, 2014

Serious question, with the infrastructure issues and whatnot America has talked about, do it even have the facilities and expertise to do this?

12. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Nope. But they can hire Asians and Indians from overseas and pay them as immigrant workers for the same pay, of how they are paid in their own countries. Oh and I'm not trying to be funny. Even though the US has a huge Asian population, especially in California, NY and Chicago; we don't have schools that teach this type of factory assembly. Though I am sure Apple or any OEM can afford to train them.

29. fyah_king unregistered

Last time I checked Indians are from Asia. They should hire Indians and Chinese is the correct term.:)

64. xondk

Posts: 1904; Member since: Mar 25, 2014

There is that I suppose but that would seem to go against the America first thing? and with the block on immigration now, well yeah, I don't see that happening.

5. arman9953

Posts: 49; Member since: Nov 22, 2011

every one supporting this is stupid... just sayin

6. marorun

Posts: 5029; Member since: Mar 30, 2015

one way or another apple will pay for it. 45% import tax on a 600$ device is 270$ increase. So if they make it in usa even if its cost 200$ more at the end they should in fact not increase price. but hey its apple so they take thats opportunity to increase price lol.

25. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

Um I think import taxes are based on manufacturing cost which is around $200-250. Either way import taxes are already in place so it's not really a 35% increase.

7. asirfaysal

Posts: 98; Member since: Jul 19, 2016

analyst says trump edition will cost more than 1500$

39. ibend

Posts: 6747; Member since: Sep 30, 2014

with trump silhouette replacing apple logo...

8. libra89

Posts: 2281; Member since: Apr 15, 2016

Hahaha...no way will I ever in this life!

9. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

That analyst is a stupid ignorant nutcase. The iPhone already is way overpriced for what it offers. It's not the only phone that si overpriced for what it offers. The Pixel is too. He needs a real job!

13. batmite

Posts: 197; Member since: Jan 19, 2017

You're just being salty because the iPhone is better than your beloved Samsung Galaxy smartphones. Even the Pixel is better. Blame it on Lagwiz.

18. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Seriously?! I'm not going to debate something that isn't remotely factual. If you like the iPhone then just like it. I like them too. They just aren't worth what they cost which I am entitled to feel. The difference is, you have no facts to even back up your claim and I don't debate personal preference. I love what I buy and I love all tech. The main difference between you an me is, I'm brand agnostic and you brand ignorant! My resolve this year is to not get into debates with people who just come here to start fights they can't even win on any level. The my choice is better than your choice BS is for ignorant people like you. Enjoy being ignorant for your pathetic little lonely trailer trash life!

21. kiko007

Posts: 7493; Member since: Feb 17, 2016

"Seriously?! I'm not going to debate something that isn't remotely factual" I s**t you not.......the very last sentence: "Enjoy being ignorant for your pathetic little lonely trailer trash life!" Laughing. My. f**king. Ass. Off. You literally contradicted yourself in the exact same post. That takes some skill right there!

38. NoToFanboys

Posts: 3231; Member since: Oct 03, 2015

kiko, trust me, you don't want to get involved in the argument of those two stupid trolls.

40. kiko007

Posts: 7493; Member since: Feb 17, 2016

You're probably right.

41. batmite

Posts: 197; Member since: Jan 19, 2017

What are you babbling about now?

33. batmite

Posts: 197; Member since: Jan 19, 2017

You saying that you're brand agnostic is like me saying that I don't love the iPhone. Since that's not the case, how about you take your lies and hypocrisy elsewhere, because I'm not buying it.

11. newbey123

Posts: 701; Member since: Mar 19, 2012

So stupid!

17. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

I think I would be okay with Apple bring a limited amount of manufacturing to the US, if they can do it without raising the price. Which maybe, bring 5% of their manufacturing here so they wouldn't have too. Like for example, the 10M phones they usually sell on pre-order, make all those here, and at the same time have another 10M ready from China or wherever. This will prevent their BS shortages they have every year where after you order on pre-order, you can't get a new phone for up to 8 weeks. We don't need some limited edition phone from any OEM. Even though I think the Samsung IronMan and Batman options were cool, no phone is worth $1200 for me, even if it had the fastest specs in the world. But I think everyone needs to consider this and consider it fast. Donald Trump signed an Executive Order to break off US Trade deal with China. He is also planning to raising tariff costs on imports to 35%. If this happens, you can surely guess that OEM will raise the cost of their products at least 15%~25% to cover that cost. Which means an iPhone which starts at $649, could end of cost as much as $200 more on retail. For me, I can say with affirmation that after this year, I have no plans to pay $800~900 for another phone. After the Note 8, I won't be buying another phone for a while. These costs are ridiculous and they keep goign up for very limited capabilities. No phone is worth $800 no matter whose name is on it. At least the Galaxy S cost has remained almost unchanged for 5 years, with the starting cost being $599 on VZE and $650!699 everywhere else. So the S right now at $649 is right where I want to be. I know the S8 is gonna increase an easy $100 this year and without carriers subsidies this is gettign to far out if hand.

26. NarutoKage14

Posts: 1324; Member since: Aug 31, 2016

Can you reduce the size of your comments by about 75% please? Not even gonna bother reading your comment cause it's so long.

22. newbey123

Posts: 701; Member since: Mar 19, 2012

Great, so the US would get the crappy made phones and the rest of the world world would get the better ones, lame.

23. Moose

Posts: 418; Member since: Jan 05, 2015

Don't care where my phone is made as long as it meets my specs. Wouldn't pay for a luxury item like an iphone regardless of where its made anyway. Same reason why I'd never buy a Rolex watch or any other showy fashion item. Not into status symbols.

50. Leo_MC

Posts: 7432; Member since: Dec 02, 2011

When you work the field or sell greasy steak to wood choppers you don't need to wear a Rolex.

* Some comments have been hidden, because they don't meet the discussions rules.

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