Why Making iPhones in the US Is a ‘Non-Starter,’ Wedbush Says, as Trump Pressures Apple

President Trump wants Apple (AAPL) to make iPhones in the U.S. Wall Street analysts say that’s not likely to happen. 

“We see no chance that iPhone production starts to happen in the U.S. given the upside down cost model and Herculean-like supply chain logistics needed,” Wedbush analysts said Friday. “This would result in an iPhone price point that is a non-starter.”

The firm estimates that an American-made iPhone would cost $3,500. The company’s iPhone 16 currently starts at $799, with the iPhone 16 Pro starting at $999.

The comments come after Trump on Thursday said he told Apple CEO Tim Cook to stop expanding iPhone production in India, and pushed the company to move operations stateside instead, as it shifts away from manufacturing in China. Cook has said that a majority of iPhones sold in the U.S. this quarter will come from India, rather than China.

“I had a little problem with Tim Cook yesterday. I said to him, Tim, you’re my friend. I treated you very good. You’re coming here with $500 billion but now here you are building all over India,” Trump said, speaking at an event in Qatar during his four-day trip to the Middle East.

Apple’s expansion in India could look particularly savvy if the U.S. strikes a trade deal with the country, Wedbush noted. Trump said Thursday India has offered a deal “where basically they are willing to literally charge us no tariffs,” Reuters reported.

Shares of Apple have climbed nearly 7% this week to about $210 in recent trading, amid optimism about new deals and easing tariffs. Still, the stock is down close to 16% since the start of the year.

Wedbush holds a price target of $270 for Apple stock, which is above the analyst consensus of $228 compiled by Visible Alpha. Earlier this week, Morgan Stanley maintained its price target of $235, arguing the stock “will be range-bound short term with all the competing forces in the market.”