I'm surprised that they admitted that their cost to produce the phone in China is $550 and they sell it for $799, while the cost to produce the phone in the US is $650 and they sell it for $2000. That's a 45% markup on one and 207% markup on the other.
Taking just those figures in mind, they shouldn't be at all worried about tariffs - anything more than an 18% tariff, it's cheaper for them to build in the US than China for US customers. Honestly, that's much lower than I expected, especially considering they're even more restrictive in their component sourcing than most companies would need to be because they're catering to a security-focused group.
I guess the real issue is that they don't have any more production capacity in the US, rather than it just being a cost issue.
Taking just those figures in mind, they shouldn't be at all worried about tariffs - anything more than an 18% tariff, it's cheaper for them to build in the US than China for US customers. Honestly, that's much lower than I expected, especially considering they're even more restrictive in their component sourcing than most companies would need to be because they're catering to a security-focused group.
I guess the real issue is that they don't have any more production capacity in the US, rather than it just being a cost issue.