The idea of Apple starting to make iPhones in the USA has been tossed around, especially with the trade tensions between the USA and China. However, this shift is not as simple as it sounds. Apple has been making iPhones in China for nearly two decades. The company set up a complex supply chain there in the 1990s. Moving this operation to the USA would take years and cost billions. Plus, it could make iPhones much more expensive.  The price of an iPhone made in China or India is around $1, 000. If made in the USA, it could jump to over $3, 000. This price hike could seriously hurt iPhone sales.

Apple has not said much about these tariffs publicly. The company's CEO, Tim Cook, will likely face questions about this during an upcoming meeting with analysts. Apple's stock has taken a hit since the tariffs started, dropping nearly 20%. This has lowered the company's value by $600 billion. If the tariffs stay, Apple might have to raise prices on iPhones and other products. The big question is how long Apple can keep prices the same before the tariffs eat into their profits too much.

One reason Apple can hold off on raising prices is its strong service division. This part of the business brings in a lot of money and is not affected by the tariffs. Apple made $96 billion from this division last year. This gives the company some breathing room to absorb the extra costs from the tariffs, at least for now. Apple has also been investing in the USA, but not in iPhone manufacturing. They plan to spend $500 billion and hire 20, 000 people by 2028. This includes building a data center in Houston. Some people think this shows Apple believes the USA can handle complex manufacturing. However, Apple's CEO, Tim Cook, has doubts. He once said the USA might not have enough skilled workers for the detailed work needed to make iPhones.  The former president tried to push Apple to make iPhones in the USA, but it did not work out. Instead, Apple started making some iPhones in India and other products in Vietnam. The former president also visited an Apple plant in Texas, but this plant had been open since the previous president's time.  The idea of Apple making iPhones in the USA is interesting, but it faces many challenges. The company has to think about costs, skilled workers, and how it will affect iPhone prices. Only time will tell if this shift will happen.

APPLES FUTURE MANUFACTURING PLANS

Why Apple Might Not Start Making iPhones in the USA

Continue reading...