Trump's Claim On IPhone Production Can Move To The US Is Considered Wrong: It Takes Tens Of Years

Illustration of the assembly of iPhones in China (photo: x @iDropNews ·)

JAKARTA - US President Donald Trump has again voiced his desire to move iPhone production to the United States. However, analysts see these claims as unrealistic and impossible to achieve in Trump's term of office.

In a press conference held Tuesday, April 8, White House Spokesman Krypto Leavitt said that President Trump believes the US has sufficient resources and labor to mass-produce iPhones. Leavitt said Trump wanted to bring back manufacturing work to the US, especially in the fields of advanced technologies such as AI and chips.

However, the statement contradicts reality on the ground. The iPhone assembly process is much more complex than just 'measuring small screws,' as US Secretary of State, Howard Lutnick said. iPhone production involves hundreds of components from various countries, including the Apple Silicon chip from TSMC, a camera from Sony, and a screen from LG.

Although Trump is optimistic, the reality is that until now there has not been a single iPhone assembly facility in the US. The construction of a single factory alone takes years. Meanwhile, cheap and trained workers such as in China or India are barely available in the US.

Leavitt had mentioned that Apple had invested $500 billion in the US as evidence of the country's ability to produce iPhones. However, the investment is mostly related to data, research, and service centers, not direct iPhone manufacturing.

iPhone production involves a complex global supply chain. Almost all raw materials, including rare earth elements, must be imported and will be subject to high tariffs if processed in the US. Not only that, sub-component factories are not yet available in the US, meaning the entire manufacturing ecosystem must be built from zero a process that could take more than a decade.

Several Apple chips have indeed begun to be produced at the TSMC facility in Arizona. However, the chips made are old models such as the A16 Bionic used on the regular iPhone 15. This facility is still five years behind the TSMC plant in Taiwan.

In fact, the latest 2nm chip planned to be used on the iPhone 18 Pro cannot yet be produced outside Taiwan due to Taiwan's government regulations that prohibit the export of cutting-edge technology.

iPhone 'Made in USA' Is Still Far From Reality

To date, around 90% of iPhones are still produced in China by partners such as Foxconn and Luxshare. India accounts for about 10'15% of the rest. The US doesn't have a low-cost workforce with special expertise, and if Apple imposes production in the US, costs will soar and most likely the iPhone price will rise dramatically.

In 2022, Apple CEO Tim Cook said chip production in Arizona was an "initial step", but it even took four years just to be able to start producing one type of component.

Apple still has to import many parts of the iPhone such as cameras and screens. If the entire process is carried out in the US, the price could soar and consumers would not necessarily accept it.

India Becomes An Alternative, Not America

While Trump hopes the iPhone can be produced in the US, Apple actually strengthens its production base in India. With import rates only 26% (much lower than Trump's planned 104% tariff for products from China), India is a much more logical and economical choice.

Apple has even reportedly started hoarding current generation products to anticipate price hikes due to new rates. Some analysts predict the price of the iPhone could rise to 43% by September 2025.

While Tim Cook has a track record in negotiating with the government, including the possibility of asking for tariff exemptions, one thing is for sure: moving iPhone production to the US will not happen in the near future, maybe even never at all.