Trump demands Apple Inc. (AAPL.US) to produce iPhones in the United States. Analysts directly refute: "I don't think this will work."

President Donald Trump believes that Apple Inc. (AAPL.US) can produce its iconic product, the iPhone, in the United States to avoid new tariffs. However, Laura Martin, an analyst from Needham, disagrees. On Tuesday, Martin responded to White House Press Secretary Caroline Levitt's comments about the tech giant moving iPhone manufacturing to the U.S. on a program, saying, "I don't think that will work." Martin pointed out that if Apple Inc. were to start producing their flagship product in the U.S., the costs would increase significantly. She is not the only one on Wall Street with this concern. Analyst Dan Ives from Wedbush Securities stated that the cost of producing an iPhone in the U.S. could be as high as $3500. Martin also mentioned that the process of shifting the supply chain for Apple Inc. to the U.S. would take several years. Most supply chain experts believe that producing the iPhone entirely in the U.S. is impossible. When asked about the issue of moving iPhone production, Levitt responded on Tuesday that Trump wants to bring manufacturing job opportunities to the U.S. She mentioned that Trump believes the U.S. has the labor force and resources necessary for producing smartphones domestically. Regarding Trump's stance on producing the iPhone in the U.S., Levitt stated, "He believes that we have the labor and resources to do this." Levitt also added, "As you know, Apple Inc. has already invested $500 billion in the U.S. So, if Apple Inc. believes that the U.S. cannot do this, they may not invest such a large sum of money." As Martin made these statements, investors began selling Apple Inc. stocks due to the impact of the company's manufacturing operations in China. Martin noted that overall, Trump's tariff policy would increase Apple Inc.'s costs by about 50%. Apple Inc. Stock Woes On Tuesday, Apple Inc. stock fluctuated significantly, ultimately falling by almost 2%. Over the past five trading days, investors have been assessing what Trump's policies mean for the well-known iPhone, iPad, and other product manufacturer, leading to a roughly 20% drop in Apple Inc.'s stock price. UBS Group AG predicted on Monday that Trump's tariff plan could force Apple Inc. to raise the price of its highest-end iPhone the 16 Pro Max for U.S. consumers by up to $350. Martin warned that if Apple Inc. passes on increased costs to U.S. consumers, it could further drive up inflation. For investors, Martin advised to wait and see before buying low. She noted that due to trade policy uncertainties, most analysts have not adjusted their earnings expectations for Apple Inc. She also stated that if tariffs are implemented as planned, or if Apple Inc. faces other impacts, traders may face more downward pressure on stock prices. Martin added, "There are many worst-case scenarios that could arise for Apple Inc."