BofA Securities analyst Wamsi Mohan maintained a Buy rating on Apple Inc (NASDAQ:AAPL) with a price target of $250 Wednesday.
Recently, client focus has shifted to the feasibility of manufacturing Apple products, such as iPhones, in the U.S.
Mohan noted while Apple can find labor to assemble iPhones in the U.S., a significant portion of the sub-assemblies would still be manufactured elsewhere, assembled in China, and imported to the U.S.
This is because, while moving the final assembly to the U.S. may be possible, moving the entire iPhone supply chain would be a much more significant undertaking and would likely take many years, if even possible.
Mohan estimated how the bill of materials (BOM) cost of an iPhone 16 Pro Max would increase if just the final assembly were moved to the U.S., with and without reciprocal tariffs. The analyst noted iPhone costs can increase by 25% purely due to higher labor costs …