Trump’s ‘High People Idea’ Would Double Cost Of iPhones

Dave Chappelle’s in the news this week.

As someone who was relatively young (I mean, I wasn’t a teenager or anything, but I still had “the rest of my life ahead of me,” as the old saying goes) when Dave rose to become one of the most famous people on the planet, I’ll always have that sense of pride which goes along with being there “from the beginning,” so to speak.

You don’t get loyalty royalties for that, unfortunately, but there’s something satisfying about being able to say, “I remember when Dave was a nobody. I was there before Chappelle’s Show.”

As a lifelong follower of Dave’s career, I remember the 2017 standup routine which went viral this week amid the debate around Donald Trump’s tariffs. Here’s the clip:

 

Prophetic, Dave. Truly prophetic.

So, would iPhones actually cost $9,000 in the event Howard Lutnick’s dream comes true and “millions of human beings screwing in little screws to make iPhones” in China “come to America”?

No. But they would cost up to, say, $2,500 with tax and assuming no carrier subsidies, according to one bank’s estimates.

“While it may be possible to move final assembly to the US, moving the entire iPhone supply chain would be a much bigger undertaking and would likely take many years, if it’s even possible,” BofA’s Wamsi Mohan wrote, in a note addressing this all-important consumer electronics question.

The increase in labor costs alone from re-shoring iPhone manufacturing would raise prices by 25%, Mohan estimated, adding that “if Apple had to pay reciprocal tariffs to import sub-assemblies into the US, we see the total cost of an iPhone increasing 90% or more.”

So, is that something Apple’s going to do? No. The short answer’s “no.”

“Unless it becomes clear as to how permanent the new tariffs are, we do not expect Apple to take the step of moving manufacturing into the US,” BofA remarked, in the same note.

As Dave put it, “Leave that job in China where it belongs.”


 

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