President Donald Trump has repeatedly claimed that Apple should make its iPhones in the United States, even threatening tariffs as high as 25% on foreign-manufactured products. But industry insiders and Apple watchers say this idea is simply unrealistic — not because Apple lacks the will, but because America lacks the capacity.
Journalist Patrick McGee, author of the new book Apple In China: The Capture of the World’s Greatest Company, offers a detailed account of how deeply Apple is enmeshed in China’s labor force, infrastructure, and supply chain. After years covering Apple for the Financial Times, McGee argues that China’s ecosystem has been more than beneficial to Apple. It’s been transformational. And not just for Apple — for China too, which has gained unparalleled access to U.S. manufacturing know-how as a result.
McGee explains that building an iPhone requires a complex system of labor and logistics. In China, cities like Zhengzhou or Shenzhen can assemble hundreds of thousands of iPhones in a matter of weeks. Foxconn and other contract manufacturers manage a highly flexible workforce that scales up for a few months during peak iPhone season, then shifts to other projects. This model minimizes Apple’s cost and maximizes efficiency. Trying to replicate this in the U.S. would mean convincing entire cities to pivot their workforce for short periods — and to do so without the flexible labor force China offers.
Attempting to replicate this manufacturing prowess in the U.S. would face significant hurdles. Analysts estimate that producing iPhones domestically could increase the cost of each device to around $3,500, compared to the current price range of $799 to $1,200. This cost surge is attributed to higher labor expenses, the need to build new infrastructure, and the lack of a skilled workforce experienced in electronics manufacturing.
And that’s just the labor. China also has unmatched manufacturing infrastructure — a deeply interconnected web of plants, subcontractors, and logistics hubs built specifically around Apple’s needs. By the time the U.S. could even get environmental approval for a new plant, a factory in China could already be producing devices. Apple is not just assembling phones in China. It’s tapping into a manufacturing superpower.
In response to geopolitical tensions and to diversify its manufacturing base, Apple has been gradually increasing iPhone production in India. As of early 2025, India accounts for approximately 17-20% of global iPhone production, with projections suggesting this could rise to 60-65% by the end of the year. Foxconn, Apple’s primary manufacturing partner, has invested $1.5 billion in a new facility in Tamil Nadu to support this expansion.
Apple’s recent announcement that most of its U.S. iPhones will now come from India might sound like a strategic shift. But McGee calls it misleading. If 999 out of 1,000 steps to build an iPhone still happen in China, and only the final step — say, boxing the phone — happens in India, it’s still a Chinese iPhone in everything but name. Labeling it “Made in India” avoids tariffs, but doesn’t fundamentally reduce Apple’s dependence on China.
Despite new tariffs that could cost Apple around $900 million per quarter, the company’s massive profits — over $100 billion annually — mean it can absorb these costs or pass them along to consumers. Moving some final assembly to India is a cost-avoidance strategy, not a true decoupling from China.
But the deeper issue, McGee warns, is that Apple’s operations in China have contributed to a massive and ongoing transfer of technological knowledge. By designing high-tech products in the U.S. and building them in China, Apple has empowered Chinese engineers and manufacturers with a deep understanding of advanced production. This raises national security questions, especially as China positions itself as America’s main geopolitical rival.
Even if Apple wanted to leave China, it’s likely too late. The supply chain is too deep, the relationships too embedded, and the alternative options too limited. And while countries like Vietnam and India may eventually take on more of Apple’s production, it will take years before they can offer anything close to what China provides.
Trump’s proposed tariffs aim to incentivize domestic manufacturing, but they also raise legal questions. The use of the International Emergency Economic Powers Act (IEEPA) to impose such tariffs could face legal challenges, and the effectiveness of this approach in bringing manufacturing jobs back to the U.S. is debatable.
For now, America can threaten tariffs and encourage reshoring all it wants. But the iPhone is a Chinese-made product. And unless the U.S. fundamentally reinvents its manufacturing ecosystem, that’s unlikely to change.
Prepared by Navruzakhon Burieva
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