Following the White House's suggestion that Apple (AAPL, Financial) could manufacture iPhones in the United States, a report by Bank of America Securities indicates that while technically feasible, this move could cause a significant rise in costs. The report notes that merely shifting to U.S. labor would increase iPhone production costs by 25%. Furthermore, if Apple has to pay tariffs on imported components, the total cost could surge by more than 90%.
Despite the potential cost implications, Bank of America maintains a "buy" rating on Apple, with a target price set at $250. After experiencing a four-day decline, Apple's stock rebounded, gaining over 4% recently.
