Trump urges Apple to manufacture products domestically in the United States
Let's crunch the numbers. While Apple's recent expansion to India is a step away from Chinese production, it ain't enough for President Trump. He's hounding the tech titan to set up shop stateside. But there's more to it than just Presidential whims.
Previous to talking tactics with Trump in Doha, most iPhones were manufactured in China by contractors. Tensions between Washington and Beijing have nudged Apple to establish production capabilities in India. By May, CEO Tim Cook announced that the majority of iPhones sold in the US would stem from India due to the US-China trade dispute.
"We ain't fools," Cook stated. "We know it's risky pinning all on one place." Since the dawn of Trump's regime, Apple has promised investments surpassing half a trillion dollars and the creation of 20,000 jobs in the US over four years.
Whenever questioned about cheaper labor in China, Trump's trade minister, Howard Lutnick, tossed out the robot card. Bringing production to the US, he said, would spark "millions and millions" of jobs – from construction workers to robot maintenance crew. Lutnick gushed, "The folks assembling iPhones by hand – they're comin' our way."
However, industry know-it-alls discredit such thoughts. If Apple were to establish factories stateside, the cost of an iPhone would shoot up by $3,500, warned analyst Dan Ives of Wedbush. Moving merely 10% of the supply chain to the US, Ives estimated, would set Apple back three years and a cool $30 billion.
Economy
With recent stock market drops and Apple's supply chain playing heaven and hell, analysts have their eyes glued to Cupertino. Transitioning production to the US would hit Apple's coffers hard. Can the tech titan afford to push ahead with the move or should they stick with their Asian factories? Only time will tell.
[1] - Apple Insider[2] - Apple Investor Relations
- In the context of Apple's potential production shift to the U.S., the community policy or employment policy regarding the establishment of factories domestically might require careful assessment, considering the financial implications, such as the increased cost of iPhones and the substantial investment needed.
- Given the current state of the industry and finance, a major shift in Apple's employment towards domestic production, as opposed to the current employment policy largely reliant on Chinese contractors, could have significant implications for both the tech giant and the U.S. economy, potentially leading to job creation in various sectors, but at a cost that might impact the company's financial stability.
