Tech Bull: $3500 iPhones? Tariff “Armageddon” Looms

Wall Street’s leading tech optimist, Dan Ives of Wedbush, is sounding the alarm. His once unwavering bullish stance on the tech sector has shifted dramatically due to potential economic fallout from proposed tariffs.

Ives warns that these tariffs, reminiscent of a “back to the 1980s” manufacturing push, could trigger an “economic Armageddon,” devastating the tech industry, stifling AI innovation, and impacting consumers significantly.

iPhone Price Shock: $3,500?

The most alarming prediction? Ives suggests the cost of an iPhone could skyrocket to $3,500. He explains that tariffs of 50% on Chinese and 32% on Taiwanese goods would effectively shut down the U.S. tech landscape, causing a 40-50% price hike on electronics. iPhones manufactured in the U.S., he says, would become prohibitively expensive.

Ives emphasizes the severe “economic pain” these tariffs could inflict, potentially setting the U.S. tech industry back a decade, while simultaneously empowering China.

Political vs. Economic Timelines

Echoing concerns raised by Nick Colas of DataTrek, Ives highlights the disconnect between political cycles and the long-term nature of manufacturing shifts. Relocating production takes years, but voters have opportunities to express their discontent every two years in Congressional elections, and every four years for the presidency.

Colas warns that if these trade policies cause a recession and increased inflation, the economic consequences will heavily influence voters, especially in the 2028 elections.

Key Takeaway: Proposed tariffs pose a significant threat to the tech industry and consumer pocketbooks, potentially leading to drastically higher prices for everyday electronics.