Tim Cook, chief executive officer of Apple Inc., speaks during a “First Tool-In” ceremony at the TSMC facility under construction in Phoenix, Arizona, US, on Tuesday, Dec. 6, 2022.
Caitlin O’Hara | Bloomberg | Getty Images
When President Barack Obama asked the late Apple CEO Steve Jobs about making an iPhone in the U.S., Jobs didn’t mince words.
The president of the U.S. and the CEO of Apple have changed, but the ambition of a “Made in the USA” iPhone remains.
Defending its “reciprocal tariffs,” the White House this week said President Donald Trump believes the U.S. has the workforce and the resources to build iPhones in the U.S. Apple CEO Tim Cook nor anybody else at the tech company has come out to back that claim, but analysts who follow Apple say the idea of an American-made iPhone is impossible at worst and highly expensive at best.
As it’s largely a theoretical exercise, there’s a broad range of guesses as to how much an all-American iPhone might cost.
Bank of America Securities analyst Wamsi Mohan said in a Thursday note that the iPhone 16 Pro, which is currently priced at $1,199, could increase 25% based on labor costs alone. That would make it a roughly $1,500 device.
Wedbush’s Dan Ives pegged $3,500 as the U.S. iPhone’s price shortly after last week’s tariff announcement, estimating that Apple would need to spend $30 billion over three years to move 10% of its supply chain to the U.S.
At the moment, Apple makes more than 80% of its products in China. Those products now receive a 145% tax when they’re imported into the U.S. after Trump’s tariffs went into effect this week.
Experts say that a “Made in the USA” iPhone would face serious challenges, ranging from finding and paying a U.S. workforce to tariff costs that Apple would incur importing parts to the U.S. for final assembly.
There’s broad agreement among analysts and industry watchers that it’s not likely to happen. Wall Street has doubted for years that Apple would do an American iPhone. “I don’t think that’s a thing,” Needham’s Laura Martin quipped on CNBC this week.
“It’s just not a reality that on the time frame of imposing tariffs that this is going to shift manufacturing here. It’s pie in the sky,” said Jeff Fieldhack, research director at Counterpoint Research.
A man checks an iPhone 16 Pro as the new iPhone 16 series smartphones go on sale at an Apple store in Beijing, China September 20, 2024.
Florence Lo | Reuters
Apple designs its products in California, but they are made by contract manufacturers, such as Foxconn, the company’s top supplier.
Even if Apple spent heavily to get Foxconn or another partner to agree to build some iPhones in the U.S, it would take years to construct the plants and install the machinery, and there’s no guarantee that U.S. trade policy might not change yet again in a way to make the factory less useful.
The biggest issue with Uncle Sam’s iPhone is that the U.S. doesn’t have the same workforce as China – though the massive number of workers needed to build iPhones is one of the attractions for the Trump administration.
“The army of millions and millions of human beings screwing in little screws to make iPhones, that kind of thing is going to come to America,” Commerce Secretary Howard Lutnick said on CBS on Sunday.
Foxconn builds iPhones and other Apple products in massive campuses that include dorms and shuttles. Workers often travel from nearby regions to work at the plant for short periods, and employment surges seasonally in the summer before new iPhones come out in the fall. The well-oiled system helps Apple pump out more than 200 million iPhones per year.
Additionally, Foxconn over the years has come under scrutiny for worker conditions many times, including in 2011 when the company installed nets around some of its buildings after a rash of worker suicides. Oversight groups have said that Foxconn’s work is grueling and that workers are pressured into working overtime.
Despite working conditions, Foxconn hired 50,000 additional workers at its biggest factory in Henan to build enough iPhones ahead of the latest models’ September launch, Chinese media reported last fall.
But Chinese workers get paid far less than American workers. The hourly wage during the iPhone 16 surge was 26 yuan, or $3.63, with a signing bonus of 7,500 yuan, or about $1,000, according to the South China Morning Post. For comparison, the minimum wage in California is $16.50 per hour.
Bank of America Securities’ Mohan estimated on Thursday that the labor cost for assembling and testing an iPhone in the U.S. would come in at $200 per iPhone, up from $40 in China.
Apple CEO Cook has also said that another issue is that American workers don’t have the right skills. In a 2017 interview, Cook said there aren’t enough tooling engineers in the U.S. Those engineers work on and configure the machines that take the sophisticated designs from Apple, which come in the form of computer files, and transform them into physical objects.
“The reason is because of the quantity of skill in one location, and the type of skill it is,” Cook said when asked at a conference why Apple does so much production in China.
A meeting of tooling engineers in China could fill “multiple football fields,” but in the U.S., it would be hard to fill one, Cook said.
The most recent effort to have Foxconn move significant production to the U.S. was a failure.
Trump announced a $10 billion investment from Foxconn to build plants in Wisconsin in 2017. Apple was never officially attached to Foxconn’s Wisconsin location, but that didn’t stop Trump from claiming Apple would build three “big beautiful plants” in the U.S.
Foxconn changed plans several times for what the Wisconsin plant would produce, but it eventually settled on making face masks during the pandemic – nothing electronics related. The Foxconn Wisconsin plant was pitched as delivering 13,000 jobs, but it only created 1,454 jobs.
During the pandemic, plans for the plant were abandoned, and most of the facility remains unbuilt.
Apple worked with Foxconn in 2011 to expand iPhone production to Brazil to avoid large import duties in that country. The plant is still operational today, and will produce iPhone 16 models to help Apple get around U.S. tariffs, according to recent Brazilian media reports.
But even after the $12 billion factory was operational, most components were still imported from Asia, and in 2015, four years after the plant was announced, the iPhones made in Brazil retailed for twice the price of iPhones made in China, according to Reuters.
However, recent efforts by Taiwan Semiconductor Manufacturing Co., Apple’s main chip manufacturer, have been successful. TSMC now makes small quantities of cutting-edge chips at a new factory in Arizona, and Apple’s a committed customer.
Apple CEO Tim Cook escorts President Donald Trump as he tours Apple’s Mac Pro manufacturing plant with Treasury Secretary Steven Mnuchin looking on in Austin, Texas, November 20, 2019.
Tom Brenner | Reuters
Even if iPhones could be assembled in America, much of what goes into an iPhone comes from countries around the world, all of which have received tariffs.
The vast majority of parts in an iPhone are made in Asia. The processor is manufactured by TSMC in Taiwan, the display is produced by South Korean companies like LG or Samsung, and the majority of the other components are made in China.
Apple would face tariffs on most of those parts, according to Mohan of Bank of America Securities, unless it could secure waivers for individual parts. Semiconductors, which are among the most valuable parts inside an iPhone, are exempt from tariffs at the moment.
Trump on Wednesday put a 90-day pause on most of his tariffs, but if the pause comes to an end, a Yankee-made iPhone 16 Pro Max could increase in price by 91% thanks to tariffs and increased labor costs, Mohan wrote.
“While it may be possible to move final assembly to the U.S., moving the entire iPhone supply chain would be a much bigger undertaking and would likely take many years, if even possible,” Mohan wrote.
Though Jobs shut down the idea of an America iPhone flat out with Obama, Cook hasn’t taken the same unvarnished approach.
Instead, Cook has led Apple’s strategy to engage with Trump, including attending his inauguration in January. Apple also announced that it will spend $500 billion within the U.S., including on some AI server production in Houston. Trump regularly cites the investment with approval.
During the first Trump administration, Cook’s strategy worked.
Although Trump talked about stars-and-stripes iPhones and Apple building plants in the U.S., the tech company was able to secure temporary exemptions for many of its products made in China. That meant Apple didn’t have to pay tariffs on important devices like the iPhone.
The charm offensive during Trump’s first term culminated in the fall of 2019 when Apple extended its commitment to assembling the $3,000 Mac Pro in a Flex factory outside Austin, Texas. Trump toured the factory with Cook.
Before Apple commits to a red, white and blue iPhone, it may produce some lower-volume products or accessories in the U.S. to charm Trump, Wall Street analysts say.
“Given we now know that the Trump administration is willing to negotiate, we wouldn’t be surprised to see Apple commit to some small-volume production in the US (HomePod? AirTags?), similar to its September 2019 commitment to manufacture the new Mac Pro in Austin, TX, to try and win an exemption,” Morgan Stanley analyst Erik Woodring wrote in a Thursday note.
Uber CEO, Dara Khosrowshahi speaks during the “Intentional Equity in Sustainability” conversation at the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week in San Francisco, California, on November 15, 2023.
Andrew Caballero-Reynolds | AFP | Getty Images
Uber CEO Dara Khosrowshahi last week told employees “it is what it is” at a heated all-hands meeting after the company announced it would increase its in-office requirements and change benefits.
The ride-sharing company informed employees on April 28 that they will be required to come into the office three days a week, up from two, starting in June, CNBC reported. Uber also changed the eligibility for its month-long paid sabbatical benefit, raising the requirement from five years at the company to eight years. The company also informed some employees who had been previously approved for remote work that they would be required to start coming in.
Khosrowshahi defended the policy changes against feisty employees who peppered him with questions and criticism at the company meeting and on Uber’s internal forum, according to audio and correspondence obtained by CNBC.
“If you’re here for a sabbatical and this change causes you to change your mind, it is what it is,” Khosrowshahi told employees at the April 29 all-hands meeting. “I’m sorry about that. The reason we want you to be here is the impact on the company. The learning here. We recognize some of these changes are going to be unpopular with folks. This is a risk we decided to take.”
The clash inside Uber highlights the growing tension between tech workers and tech management. Workers for years were drawn to Silicon Valley for its idealistic values, perks and job security, but since 2022, tech companies have cut back on benefits and conducted on-going rounds of layoffs.
Google, for example, informed some employees who were previously approved for remote work that they needed to return to the office if they want to avoid getting caught in layoffs, CNBC reported last month.
Being in person more frequently is better for collaboration, innovation and company culture, Uber told CNBC in a statement.
“It’s hardly a surprise that not everyone was thrilled about changes to remote work and sabbatical policies,” the company said. “But the job of leadership is to do what’s in the best interest of our customers and shareholders.”
After Uber announced the changes in a memo last week, employees flooded the company’s internal Slido forum with questions and comments.
“The Slido essentially has been invaded by questions about the changes we’ve made,” Khosrowshahi said at the beginning of meeting, adding that the questions had been consolidated.
“How is five years of service not a tenured employee? Especially when burnout is rampant in the org,” a highly-rated comment from one employee said, adding that they had already paid for a trip for their upcoming sabbatical.
Khosrowshahi said Uber is a “Gen-AI powered company” that needs to be on its A game. He said employees should be more interested in learning and their impact on the company than on its benefits, which spurred more employee pushback.
Some questions asked if Uber made policy changes in hopes that it would force some people to quit.
“It has nothing to do in terms of a need to drive attrition or layoffs,” said Khosrowshahi, adding that the changes had nothing to do with cost cutting. “None of that is planned. The business is operating really, really well. But listen, good isn’t good enough for us. We have to be great as a company.”
Uber will report its first quarter financial results Wednesday.
Nikki Krishnamurthy, Senior Vice President, Chief People Officer of Uber.
Courtesy: Uber
After the all-hands meeting, Uber Chief People Officer Nikki Krishnamurthy sent out a memo saying some employee comments on the meeting broadcast “crossed the line into unprofessional and disrespectful.”
“That’s not O.K., and we will be speaking with the employees who made them,” Krishnamurthy wrote, according to the memo which CNBC viewed. “Through good times and bad, we are open with each other. Yet when we see behavior like this, it makes it harder to continue being open in the same way.”
Uber in 2022 established Tuesdays and Thursdays as “anchor days” where most employees must spend at least half of their work time in the company’s office and the rest of the week could be spent working remotely for “individual productivity,” according to a now-removed blog post.
“Our business also exists in the real world, on the streets of thousands of cities, and it’s important we stay connected to the places we serve,” Krishnamurthy wrote at the time.
On the company forum, several employees questioned the change to three days in-office, citing insufficient meeting rooms and work space, according to comments viewed by CNBC.
“It’s a challenge every anchor day to even find a place to sit with your team,” one employee comment said.
The goal of anchor days is “to get as many people in the office as possible,” Khosrowshahi said, adding that Uber will be keeping track of employee attendance.
Krishnamurthy addressed the concerns about office space at the company meeting, announcing that Uber is adding 700,000 square feet of office space between its San Francisco Mission Bay and Seattle offices. The additional space will go toward more meeting rooms and cafeterias, said Krishnamurthy, adding the retrofitting will be in construction through 2026.
The Super Heavy booster returns to its launch pad after the SpaceX Starship continued to space after it was launched on its eighth test at the company’s Boca Chica launch pad in Brownsville, Texas, U.S., March 6, 2025.
Joe Skipper | Reuters
SpaceX has been granted permission by the Federal Aviation Administration to launch and land its massive Starship rockets and Super Heavy boosters up to 25 times per year from the company’s Starbase spaceport in Texas.
The aerospace and defense contractor run by Elon Musk was previously restricted to five Starship launches per year from the site. While SpaceX submitted the proposal to increase its launch cadence on the Texas Gulf Coast during the Biden administration, a final environmental assessment was just announced on Tuesday, more than three months into President Donald Trump’s term.
Musk has been a central figure in President Trump’s second administration, leading an effort to shrink the federal government and regulatory agencies, including those that oversee his companies.
The decision that the FAA announced on Tuesday is one piece of the agency’s license review process for launches.
“There are other licensing requirements still to be completed,” the FAA said in an emailed statement, with ongoing reviews that pertain to “policy, payload, safety, financial responsibility and environmental impacts.”
“Once the evaluation process is complete, the FAA will make a determination to approve or deny the license application,” the agency said.
In its final environmental assessment, the FAA decided that SpaceX’s proposal for more launches from Boca Chica, Texas, would have “no significant impact” to the environment in the vicinity. The determination follows a string of SpaceX Starship test flights and explosions, and legal clashes between the company, environmental groups and the FAA.
SpaceX originally designed its Starship rockets with the goal of launching cargo, and as many as 100 people at a time, to space. Musk has long promised SpaceX would conduct manned missions to Mars in the near future with Starship, though a realistic timeline for his goal remains elusive.
SpaceX’s first integrated Starship vehicle launched from the Boca Chica facility in April 2023, and exploded mid-flight. The U.S. Fish and Wildlife Service soon disclosed details about the aftermath of that explosion, including that a “3.5-acre fire started south of the pad site on Boca Chica State Park land,” following the test flight. Fire and debris destroyed nests, eggs and fragile habitat of endangered species in the area, the New York Times reported.
The next month, the Center for Biological Diversity and other environmental advocates, sued the FAA over purportedly inadequate environmental reviews before granting SpaceX permission to conduct those launches.
By August 2024, Texas state and federal environmental regulators had fined SpaceX after determining the company had violated the Clean Water Act at Starbase, repeatedly polluting waters in the area. Musk then threatened to sue the FAA for “regulatory overreach” when the agency said it would levy fines against SpaceX after alleged licensing and safety-related violations during two other launches in 2023.
Musk didn’t sue, however. Instead, he spent almost $300 million to propel Trump back to the White House.
A senior attorney with the Center for Biological Diversity, Jared Margolis, said in an email to CNBC on Tuesday, that his group was “incredibly disappointed, though not surprised, that the FAA has allowed SpaceX to drastically increase the number of launches and the associated harm to an ecologically critical area without taking the time to fully analyze and mitigate the impacts to the community and wildlife.”
A SpaceX spokesperson didn’t respond to a request for comment.
The decision by the FAA comes days after SpaceX won an election over the weekend to incorporate Starbase as its own city. The mayor and two city commissioners both come from SpaceX’s employee ranks.
Charles Liang, CEO of Super Micro, speaks at the HumanX AI conference at in Las Vegas on March 10, 2025.
Big Event Media | HumanX Conference | Getty Images
Super Micro issued disappointing guidance on Tuesday, a week after the server maker provided preliminary results for the latest quarter that fell far shy of Wall Street’s expectations. The stock slid about 4% in extended trading.
Here’s what the company reported in comparison with LSEG consensus:
Earnings per share: 31 cents adjusted vs. 50 cents expected
Revenue: $4.60 billion vs. $5.42 billion expected
While the latest numbers were below analysts’ estimates, they were in line with early results that Super Micro disclosed last week. The company said at the time that revenue in the fiscal third quarter would be between $4.5 billion and $4.6 billion, and that earnings per share would fall in the range of 29 cents to 31 cents. The stock plummeted 12% following that release.
But Super Micro on Tuesday gave investors their first glimpse into fourth-quarter results, and those are also below expectations. Super Micro called for 40 cents to 50 cents in adjusted earnings per share on $5.6 billion to $6.4 billion in revenue. Analysts polled by LSEG had been looking for 69 cents in adjusted earnings per share on $6.82 billion in revenue.
The macroeconomic environment is likely to weigh on performance, the company said, following President Donald Trump’s announcement in early April of sweeping new tariffs on imported goods. CEO Charles Liang also said that some customers delayed purchases of data center technology in the latest quarter.
“We do expect many of those commitments to land in the June and September quarters, reinforcing my confidence in our ability to meet our long-term targets,” Liang said in the release. He added that “economic uncertainty and tariff impacts may have a short-term impact.”
Super Micro’s revenue grew 19% year over year during the quarter, which ended on March 31. Net income of 17 cents per share were down from 66 cents in the same quarter a year ago.
It’s been a treacherous past year for Super Micro. Prior to that, the stock had been on a tear due to the company’s position in the artificial intelligence market, selling servers packed with Nvidia’s graphics processing units.
Over the summer, short seller Hindenburg Research issued a report on the Super Micro, claiming it had found proof of “accounting manipulation.” In October, Ernst & Young resigned as the company’s auditor after raising concerns about internal control over financial reporting and other matters.
An independent special committee investigated but “did not raise any substantial concerns about the integrity of Super Micro’s senior management or Audit Committee, or their commitment to ensuring that the Company’s financial statements are materially accurate,” according to a statement.
In February, Super Micro filed an annual report for its 2024 fiscal year, which ended on June 30, helping to keep the stock from being delisted on Nasdaq. Staff from the exchange had informed Super Micro that the company was back in compliance with filing requirements, according to a statement.
As of Tuesday’s closing bell, Super Micro had gained 9% so far in 2025, while the S&P 500 index had declined by 4%.
Executives will discuss the results on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.