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President Donald Trump’s administration has been predicting that its tariff losses against China will allow Apple to make iPhones in the U.S. for the first time.
But it’s an unlikely situation, even if U.S. tariffs now account for 145% of products made in China, the country where Apple makes most of its iPhones since its first model came on the market 18 years ago.
The inhibitory effects of Apple’s transfer of its production at home include complex supply chains established in China in the 1990s. Building a new factory in the United States will take years and billions of dollars, then face with Apple’s economic power three times the price of iPhone, threatening sales of torpedo products.
They may receive probation. The Trump administration said Friday afternoon Excluding electronic products, including smartphonesfrom the current reciprocal tariffs. But it can still impose new or different tariffs on electronic products later.
Dan Ives, an analyst at Wedbush Securities, asserted: “The concept of making an iPhone in the United States is a person who doesn’t start. He estimates that if production is transferred to the United States, the current price of $1,000 for iPhones made in China or India will soar above $3,000, and he believes that domestic production will not be able to do until the earliest 2028.
Apple did not respond to a request for comment Wednesday. Cupertino, California, has not publicly discussed its response to Trump’s tariffs on China, but the topic may appear on May 1, when Apple CEO Tim Cook plans to raise analyst questions on a quarterly conference call to discuss the company’s financial results and strategy.
There is no doubt that given that Apple’s stock has fallen 15%, and that Chinese tariffs will be a hot issue since Trump began increasing them on April 2.
If tariffs are held, it is generally expected that Apple will eventually eventually raise prices for iPhones and other popular products, as Silicon Valley’s supply chains are very concentrated in China, India and other overseas markets, an escalating trade war.
The biggest question is how long Apple may be willing to last at current prices and ask consumers to take some burden when the tariffs have become too much to bear.
Forrester Research Analyst Dipanjan Chatterjee said that one of the main reasons Apple has kept its boundaries on current iPhone pricing, while Chinese tariffs remain as the company continues to earn huge profit margins from revenue generated from subscriptions and other services related to its products. In Apple’s last fiscal year, the department collected $96 billion in revenue, but Trump’s tariffs remain unaffected.
“Apple can absorb at least some of the cost increase caused by tariffs without significant financial impact,” Chatterjee said.
Apple tried to appease Trump by announcing plans to hire 20,000 people in the U.S. in 2028, but that has nothing to do with making iPhones at home. Instead, Apple promises to provide Houston data centers with computer servers that power AI-powered data centers—the company is expanding to a technology as part of the industry-wide boom.
Asked this week whether Trump believes Apple intends to build an iPhone in the U.S., White House press secretary Karoline Levitt pointed out that Apple’s investment commitments are evidence the company believes can be done. “If Apple didn’t think the United States could do that, they probably wouldn’t have made such a big change,” Levitt said.
U.S. Commerce Secretary Howard Lutnick also predicts that tariffs will force a transformation in manufacturing that appears on CBS news on April 6. “Millions of human army tighten small screws to make iPhones, and this kind of thing will come to the United States,” Lutnik said.
But when he appeared at a conference in China in 2017, Cook made the case for whether there were enough workers in the U.S. labor pool to have enough vocational skills to carry out the hard and tedious work that Lutnik was discussing.
“In the United States, you might have meetings with engineers, and I’m not sure if we can fill the room,” Cook said. “In China, you can fill multiple football fields.”
Trump also tried to transfer iPhone production to the United States during his first term as president. But the government eventually exempted the iPhone from his tariffs on China at the time – Apple announced a pledge to invest $355 billion in Trump’s first tariff on China, prompting Apple to start a process, causing some of its current iPhones to be made in India and to produce some other products in Vietnam.
Cook also participated in a tour of the Texas factory in 2019, and Apple has been assembling some Mac computers since 2013. Shortly after completing our Trump, Trump earned honors for the plant opened by Apple, with Barack Obama as president. Trump released on November 19, 2019: “Today, I opened a major Apple manufacturing plant in Texas and will bring back high-paying jobs in the United States.”
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