Your next iPhone could set you back up to USD 3.5k: If Apple moves iPhone production to the US in lieu of Trump’s push to reindustrialize America, your next iPhone upgrade could cost USD 3.5k — or around EGP 180.7k at today’s rates — almost triple the current USD 1k price tag, Dan Ives, tech research chief at Wedbush Securities, told CNN. Ives noted that moving iPhone manufacturing to US soil is no easy task — it would cost Apple around USD 30 bn and take three years to shift just 10% of its supply chain to the US.

Why so costly? Apple’s global operations are heavily reliant on Asia, with about 90% of iPhones assembled in China. Components like chips and displays come from Taiwan and South Korea, while other parts are sourced in China and finished there. Trying to replicate this complex web of suppliers and assembly hubs in America could be economically catastrophic, Ives warned. “It’s an economic Armageddon, but especially for the tech industry.”

Investors are already quite jittery: Apple shares have dropped 23% since last week’s tariff announcement, wiping out over USD 770 bn in value and pushing the tech giant off the top of the S&P 500 Index, Bloomberg writes.

Even if Apple avoids reshoring, iPhones could still get more expensive, with tech analysts warning that Apple could pass the added cost of tariffs to consumers, with Rosenblatt Securities projecting a 43% hike and Counterpoint Research's Neil Shah estimating a more conservative 30% hike, depending on where the production shifts.

Apple’s fallback strategy: In February, the Cupertino-based company had already committed to investing USD 500 bn in the US over the next four years. It also has been looking to expand in India and Brazil to offset risks, but both markets pose challenges — with India facing a 26% tariff and Brazil, despite a lower 10% rate, lacking the capacity to produce iPhones, according to Shah.

How will the Egyptian market react? Hisham El Hennawy, Senior Merchandizing Director at B.Tech, told EnterpriseAM that he expects ultra-loyal Apple customers in Egypt to utilize payment plan options to continue buying Apple products, which will drive fintech sales in the country. Other tranches of customers may behave differently: some Apple loyalists may opt for buying older models in the future, and more lukewarm customers will explore other options.

A large base will give up on Apple completely, aided by a growing competitive landscape of locally produced Chinese smartphones. El Hennawy added that Samsung is expected to start manufacturing their high-end models in Egypt within the year, and their competitive prices and impressive features will win over a large number of Apple customers. Mohamed Medhat, founder of Tradeline, agrees with the sentiment, telling EnterpriseAM that the future price tag — in addition to the taxes and customs already rated at 38% — will make Apple products unaffordable to the majority of the current customer base.

What can Apple resellers do? Wait and see, says Medhat: “The pace of global economic decisions are being made rapidly, but their implementation on the ground won’t match pace. The sophisticated supply chain may buy both consumers and resellers some time before we have to face the facts.”

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