Google head disputes claims of political bias in search results
Analyst predicts iPhone price would rise 20 percent if Apple shifted manufacturing to US: report
Bank of America Merrill Lynch is estimating that iPhone prices would rise up to 20 percent if Apple followed through with President Trump's call for it to shift its factory operations to the U.S., according to CNBC.
The business news network obtained a research note from Merrill Lynch issued Monday responding to a tweet from the president urging the tech giant make its "products in the United States instead of China."
"The conclusion was for the iPhone (not currently impacted by Tariffs) moving production (100% of final assembly) to the U.S. would need 20% price increases to offset the incremental labor costs," analyst Wamsi Mohan wrote.
Mohan also predicted that Apple would need to raise prices by 8 percent if it shifted 10 percent of its manufacturing to the U.S. - which he called the "most likely" scenario. A 50 percent shift, Mohan added, would lead to a 14 percent price increase.
The forecast comes after a Saturday tweet from Trump urging Apple to avoid tariff costs by increasing domestic production.
"Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive," the president wrote. "Make your products in the United States instead of China. Start building new plants now. Exciting! #MAGA."
An Apple spokesman did not immediately respond when asked for comment.