Amid U.S. President Donald Trump's continuous tough tariff policy against China, there are forecasts that if Apple excludes China from its iPhone manufacturing process and produces in the U.S., the price could soar to over 5 million won. In this regard, experts noted that "it is virtually impossible to manufacture and assemble all components of the iPhone in the U.S." They cited China's control over supply chains, abundant manufacturing workforce, and excellent manufacturing technology as the reasons.
On the 9th (local time), major foreign media reported that President Trump announced a 125% tariff on China. He also mentioned that tariffs would be suspended for other countries for 90 days, but China was excluded from this measure, due to the retaliation tariffs imposed by the U.S. Consequently, concerns are rising over price increases for electronics that heavily use components from China or are assembled there.
◇ "U.S. production" mentioned for iPhone… "Prices could soar to 5 million won"
◇ ‘미국 생산’ 언급되는 아이폰… “가격 500만원까지 치솟을 것”
A prime example is Apple's iPhone. Previously, the Trump administration directly mentioned the production of iPhones in the U.S. The White House stated during a briefing the day before that "President Trump believes Apple can move its iPhone production to the U.S.," and Commerce Secretary Howard Rootnick noted in an appearance on CBS that "the job of assembling millions of tiny screws will return to the U.S.," adding, "Of course, it will be automated."
Should U.S.-made iPhones become a reality, forecasts suggest the iPhone price could soar to a maximum of 5 million won. Dan Ives, a global technology research head at Wedbush Securities, noted in an interview with CNN that if iPhones are produced in the U.S., the price could surge to approximately $3,500 (about 5.12 million won).
◇ "It will take at least 3–5 years to establish a U.S.-centric supply chain"
However, experts analyzed that the likelihood of 'U.S.-made iPhones' being produced as President Trump hopes is nearly impossible. According to a report by The Wall Street Journal (WSJ) citing the opinion of Gary Jerfey, an emeritus professor at Duke University, over 40 countries' components are used in the iPhone. Among them, the most essential and complex components are produced in about six countries. The supply chains for these components are centered around China.
Professor Jerfey pointed out that transferring the production of key components to North America and rebuilding the supply chain is the most realistic alternative for making U.S.-made iPhones feasible. Nonetheless, some component production would still need to reach beyond Mexico and Canada to Western Europe, which he projected would also take at least 3–5 years.
According to the WSJ, one of the first challenges Apple faced when it initially began producing the 'Mac Pro (PC)' exclusively in the U.S. was sourcing components, including screws, from nearby locations.
◇ "Even if expenses are resolved, workforce issues remain unsolvable"
Fundamentally, there is an issue with the manufacturing workforce. iPhone assembly requires both robotic automation technology and skilled manual labor. While some processes can be replaced by robots, areas like wiring, adhesive application, and screw assembly still require human hands.
Experts project that while the U.S. may equip itself with high-quality manufacturing facilities, it will be nearly impossible to secure a workforce as large as China’s. For instance, Foxconn, which assembles iPhones, employs 300,000 workers in Zhengzhou, China, known as 'iPhone City.' India, viewed as an alternative to China, also has an abundant manufacturing workforce. In contrast, securing a manufacturing workforce in the U.S. itself poses the greatest challenge to operating factories. Tinglong Dai, a professor at Johns Hopkins University, noted to the WSJ, "The U.S. is experiencing a severe labor shortage and has already lost the technology for large-scale manufacturing."
The technological gap cannot be overlooked. Apple CEO Tim Cook previously stated in a 2017 interview that the reason products are manufactured in China is not solely due to cheap labor. He remarked, "Our products require advanced molds. In the U.S., even if mold engineers gather for meetings, they cannot be confident about the results, but that is not the case in China."