U.S. President Donald Trump boasted about the "return of jobs and factories in full force" during his "Liberation Day" speech, following the implementation of his unprecedented global tariffs.

With these comprehensive tariffs now in effect, American consumers may face sharp price increases on products ranging from clothing to electronics. A prominent tech analyst warned that the price of Apple's iPhone could rise to approximately $3,500 if manufactured in the United States.

Trump and his economic officials promised that the tariffs would lead to the relocation of many manufacturing jobs to the U.S., employing millions of Americans. However, Dan Ives, Global Head of Technology Research at Wedbush Securities, dismissed this idea as "pure fantasy," according to comments shared with CNN and reported by Al Arabiya Business.

Ives explained that U.S.-made iPhones could cost more than three times their current price of around $1,000 due to the need to replicate the highly complex production system currently based in Asia. He stated, "This (supply chain) would be built in the U.S. through factories in West Virginia and New Jersey. iPhones would cost $3,500," referring to manufacturing facilities or high-tech plants where computer chips powering electronic devices are typically produced.

Even in this scenario, Apple would need approximately $30 billion and three years to relocate just 10% of its supply chain to the U.S., according to Ives.

Smartphone manufacturing and assembly have shifted to Asia over decades, with American companies focusing heavily on software development and product design, yielding much higher profit margins. This strategy has made Apple one of the world's most valuable companies and solidified its position as a leader in the smartphone industry.

Since Trump's inauguration in late January, Apple shares have lost about 25% of their value due to concerns over the impact of tariffs on its sprawling supply chain, which heavily relies on China and Taiwan. Approximately 90% of iPhones are assembled in China.

Ives remarked, "That's why I think you see what happened to the stock, because no company is more affected by these tariffs in this Category 5 storm than Cupertino and Apple. It's an economic disaster, especially for the tech industry."

The chips powering iPhones are primarily manufactured in Taiwan, while screen panels are supplied by South Korean companies. Other components are made in China, with final assembly mostly occurring within the country.

In February, Apple announced plans to invest $500 billion in the U.S. over the next four years as part of its efforts to expand production outside China and avoid Trump's tariffs on the country.

Tech analysts agree that iPhone prices are likely to rise even if supply chains remain unchanged. Rosenblatt Securities, a New York-based investment bank, estimated that iPhone prices could increase by 43% if Apple passes the full cost of higher tariffs onto consumers, according to a research note cited by Reuters.

Neil Shah, Vice President of Research at Counterpoint Research, estimated that iPhone prices could rise by about 30%, depending on where they are manufactured.

Apple has previously sought to diversify its production bases from China to India and Brazil and may consider shifting the production of key components to countries with lower tariff barriers to keep costs down. India faces a 26% tariff, while Brazil faces a 10% tariff. Although Trump's tariffs on Brazil are the lowest among major iPhone manufacturing hubs, the country may not have sufficient capacity to fill the gap left by China, Shah noted.

Bank of America stated that the cost of manufacturing iPhones could rise by up to 90% if Apple decides to relocate production to the U.S., primarily due to higher labor costs and logistical challenges associated with domestic production.