Trump’s push for made-in-America iPhone could double prices for consumers

US President Donald Trump is once again piling the pressure on Apple for it to manufacture the iPhone stateside, calling on CEO Tim Cook to make America’s most widely bought phone in the “United States, not India, or anyplace else” in a Friday post on Truth Social. Imported iPhones will face a tariff “of at least 25%,” he warned.

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But a 25% tariff on imported iPhones could double prices, pushing the price on store shelves to USD 2k and upwards, according to TechInsights’ Wyne Lam, who was cited by the New York Times. “In the short term, it’s not economically feasible,” Lam argued, with upfront costs to develop domestic production capacity and considerably higher labor costs presenting almost insurmountable obstacles while keeping Apple’s flagship product at a commercially effective price point.

There are also numerous other reasons why around 80% of iPhones are still made in China, including the country’s massive and flexible workforce with immense experience assembling miniature components, tooling engineer expertise, and an integrated supply chain close to input suppliers. Rebuilding this labor force in the US and developing an efficient and cost-effective ecosystem would take not just years, but bns of USD — which the Trump administration has so far been reluctant to put its money behind.

Apple execs also firmly have their sights set on the future — and that future may not include the iPhone. With the tech giant increasingly focused on artificial intelligence and believing that the future of consumer tech devices will be designed around it, the company’s best-selling device may be replaced by another yet-to-be-created piece of technology. “I would be surprised if there’s an iPhone 29,” Lam said, meaning that the bns of needed investment to onshore iPhone production may never be recouped.

MARKETS THIS MORNING-

Asian markets are mixed in early trading this morning. Japan’s Nikkei is up 0.6%, Korea’s Kospi is looking at gains of 1.0%, and the Shanghai Composite is up 0.3%. Meanwhile, the Hang Seng is down 0.2%.

THE CLOSING BELL: TADAWUL-

The TASI fell 1.7% yesterday on turnover of SAR 3.4 bn. The index is down 8.6% YTD.

In the green: SSP (+4.8%), Raoom (+4.4%) and Tasnee (+3.4%).

In the red: Acwa Power (-7.8%), Saco (-4.4%) and Alujain (-4.4%).

THE CLOSING BELL: NOMU-

The NomuC fell 0.9% yesterday on turnover of SAR 26.6 mn. The index is down 14.2% YTD.

In the green: Amwaj International (+8.8%), Molan (+5.7%) and Tadweeer (+4.5%).

In the red: Leen Alkhair (-9.5%), Naseej Tech (-9.3%) and Naas Petrol (-9.2%).

CORPORATE ACTIONS-

Qimam Noshoz Real Estate Development will increase its capital to SAR 110 mn from SAR 71 mn by issuing 3.9 mn new shares, according to a disclosure to Tadawul published yesterday. Parent company Banan Real Estate and its other subsidiary, Al-Aziza Investment and Real Estate Development, will subscribe to a combined 2.5 mn of these new shares, increasing their combined ownership in the company to 52.1% from a previous 45%.

The United International Transportation Company’s (Budget Saudi) general assembly approved a SAR 78.2 mn dividend distribution for 2H 2024 at SAR 1 per share, it said in a disclosure to Tadawul. The distribution will kick off on Sunday, 15 June.

Saudi Chemical’s general assembly greenlit a SAR 42.2 mn dividend distribution for FY 2024 at SAR 0.05 apiece, starting Sunday, 1 June, it said in a disclosure to Tadawul.