Trump still wants Apple to build your iPhone in the US, not in India, and this will not end well
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During this month’s profit call, Apple CEO Tim Cook Talk about how most iPhones sold in the US are built in India, which, given the lower American rates on that country, have protected the popular handset here in the US in the US. It sounded in a certain way, such as, between the Trump administration Apple give a pass on current ratesThe steady shift of production away from China to India and Vietnam, and the promise to invest $ 500 billion In the American production for chips and servers, Apple was on the right side of the US versus the World Trade War.
Not so fast. President Donald Trump told reporters on Thursday that he ‘had a small problem with Tim Cook’, and in fact does not want him to build iPhones in India. According to CNBCTrump remembered: “I said to him:” My friend, I treated you very well. You come here with $ 500 billion, but now I hear that you are building throughout India. ” I don’t want you to build in India, “Add later:” … we want you to build here. “
Yes, Trump, it seems that it is insisting to bring the production of all kinds back to the US and do this by a combination of exorbitant rates (and tariffs A 90 -day break About the rate of 145% of China) and putting American companies under pressure to do this.
It happens but not the way he wants it
On the eve of Trump’s rate Fusillade I wrote how Building the iPhone in the US is not logical. Like any technical gadget, the iPhone consists of hundreds of components, often built all over the world. The iPhones are only collected in China, India and Vietnam.
In some respects, Apple is Returning iPhone production back to the US because some iPhone components can be built in those new factories, and Apple Intelligence, although no physical product, could live in those servers that are built in Houston.
However, I am concerned that that will not meet the binary thinking of Trump. He clearly does not understand how technology was built or why it has been built outside the US for a long time. For example, Trump believes that Apple has built the iPhone assembly factories in China. But those are Foxconn facilities, and that company also builds products such as Nintendo and Google.
Trump makes no sense or does not care that if, by a miracle, every iPhone component in the US is built and the iPhone is also assembled here, it will be more expensive. No efficiency is obtained by all the components that are built here.
Tim Apple is good, but is he so good?
Moreover, Apple does not have the expertise. It works with partners who build components according to its specifications. For example, Apple is not a display manufacturer. It is usually purchasing of the Super Retina XDR display of the iPhone 16 of companies such as LG. LG and Samsung are currently the leading manufacturers of Displaypaneel in the world. They have the skills and the scale to deliver Apple. Apple can suddenly not replicate that here in the US.
As I wrote earlier, whatever Apple factories build here or support it financially, there will be advanced automation here. So although they will have thousands, they might not be able to hire as much as Trump had hoped.
I asked Apple for comment. Certainly, with Trump name control Tim Cook, who regards Trump as a ‘friend’, Apple must say something about this. My gamble is that they will not respond to me, but Cook, according to Trump, promised to increase American production, whatever that means.
It may mean that Cook is sticking to the plan to build more factories in the US and to continue the overseas adjustments of the Iphone production pipeline. Trump will probably not take direct action against Apple and will instead cherish in all groundbreaking ceremonies of the Apple facilities, even if none of them is for ‘iPhone factories’.
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