Why Trump's Trade War Won't Persuade Apple to Manufacture iPhones in the U.S.
The Trump administration has suggested that its extensive tariffs aimed at China could compel Apple to start manufacturing the iPhone in the United States for the first time. However, this prospect appears unlikely, especially since U.S. tariffs...
TroibNews 
The Trump administration has suggested that its extensive tariffs aimed at China could compel Apple to start manufacturing the iPhone in the United States for the first time.
However, this prospect appears unlikely, especially since U.S. tariffs are currently set at 145 percent on products imported from China, where Apple has produced the majority of its iPhones since the initial model was launched 18 years ago.
Apple faces several obstacles in shifting its production back to the U.S. One major consideration is its intricate supply chain, which the company has developed in China since the 1990s. Establishing new manufacturing facilities in the U.S. would require significant investment and time, potentially costing billions of dollars and leading to economic factors that could cause the price of an iPhone to triple, which would jeopardize sales of its flagship product.
"The concept of making iPhones in the U. S. is a non-starter," said Wedbush Securities analyst Dan Ives, reflecting a prevalent opinion among investors who closely monitor Apple. He estimates that the current price of an iPhone made in China, or India, currently at $1,000, could rise to over $3,000 if production were to be moved to the U.S. He believes that any such shift in production may not be feasible until as late as 2028. "Price points would move so dramatically, it's hard to comprehend."
Apple has not yet made public its response to Trump's tariffs on China, but this topic could arise on May 1, when CEO Tim Cook is set to answer questions from analysts during a quarterly conference call about the company’s financial performance and strategic direction.
There’s no doubt that the tariffs on China will be a significant topic of discussion, especially since Apple's stock has declined by 15 percent, resulting in a loss of $500 billion in market value since Trump began increasing tariffs on April 2.
Frederick R Cook for TROIB News
However, this prospect appears unlikely, especially since U.S. tariffs are currently set at 145 percent on products imported from China, where Apple has produced the majority of its iPhones since the initial model was launched 18 years ago.
Apple faces several obstacles in shifting its production back to the U.S. One major consideration is its intricate supply chain, which the company has developed in China since the 1990s. Establishing new manufacturing facilities in the U.S. would require significant investment and time, potentially costing billions of dollars and leading to economic factors that could cause the price of an iPhone to triple, which would jeopardize sales of its flagship product.
"The concept of making iPhones in the U. S. is a non-starter," said Wedbush Securities analyst Dan Ives, reflecting a prevalent opinion among investors who closely monitor Apple. He estimates that the current price of an iPhone made in China, or India, currently at $1,000, could rise to over $3,000 if production were to be moved to the U.S. He believes that any such shift in production may not be feasible until as late as 2028. "Price points would move so dramatically, it's hard to comprehend."
Apple has not yet made public its response to Trump's tariffs on China, but this topic could arise on May 1, when CEO Tim Cook is set to answer questions from analysts during a quarterly conference call about the company’s financial performance and strategic direction.
There’s no doubt that the tariffs on China will be a significant topic of discussion, especially since Apple's stock has declined by 15 percent, resulting in a loss of $500 billion in market value since Trump began increasing tariffs on April 2.
Frederick R Cook for TROIB News
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