After the White House suggested that Apple (AAPL) could build iPhones in the U.S., Bank of America said it’s technically possible – but incredibly expensive. Five-star analyst Wamsi Mohan estimates that just switching to U.S. labor would raise iPhone costs by 25%. If Apple also had to pay tariffs on importing parts, the total cost of an iPhone could jump by more than 90%.
Mohan explained that even if Apple could find enough labor to assemble iPhones domestically, most components would still need to be made and shipped from countries like China. While final assembly could be moved to the U.S., relocating the full supply chain would be a massive and time-consuming challenge. Nevertheless, Mohan maintains a Buy rating and $250 price target on Apple after using the iPhone 16 Pro Max as a benchmark in his analysis.
It is worth noting that Apple has been trying to diversify its manufacturing footprint by expanding into countries like India, Vietnam, and Brazil. However, these countries have also been hit by President Trump’s new tariffs. Despite those efforts, Apple still relies heavily on China, especially for iPhone production. Without an exemption, Needham estimates Apple’s 2025 earnings could take a 28% hit from the trade war. The company is expected to release its next earnings report on May 1, with analysts predicting $1.61 per share on $94.04 billion in revenue.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 17 Buys, 12 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $242.61 per share implies 34.8% upside potential.
