BofA says assembling iPhones in U.S. ‘logistically challenging’ for Apple

With client focus having shifted in recent weeks to the feasibility of manufacturing Apple (AAPL) products like iPhones in the U.S. amid tariff headlines, BofA contended that it may be possible to move final assembly to the U.S., but a significant portion of the sub-assemblies likely would still be manufactured elsewhere, assembled in China, and imported to the U.S. because moving the entire iPhone supply chain would be “a much bigger undertaking and would likely take many years, if even possible.” The firm estimates iPhone cost could increase 25% purely on higher labor cost in the U.S., but adds that if Apple had to pay reciprocal tariffs to import sub-assemblies into the U.S. it would see the total cost of an iPhone “increasing 90%+”. BofA maintains a Buy rating and $250 price target on Apple shares.