Analyst Wants Apple To Make And Sell iPhone In US For $200 More

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Jan 27, 2017
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Donald Trump’s plans to make Apple shift production to the US have made waves all around. After all, it isn’t often that Cupertino’s told what to do, even if its by the Federal government. While the future of iPhone production isn’t looking to change as of now, an analyst advises Apple to make a special edition of the smartphone in the US. He then wants Cupertino to charge extra for the device, to cover new manufacturing costs. Take a look below to find out more.

Wall Street Analyst Wants Apple To Manufacture The iPhone In US And Sell It At Markup

Should Trump make any hard and fast decisions for Apple to manufacture the iPhone in the US, we’re bound to see a lot of turmoil in the smartphone world. After all, China’s Zhegzhou is built around the company’s requirements, and a lot has already been invested by the Apple and the local government. Shifting production to the US will not only render a majority this useless but also place Apple in the middle of a complex supplier problem.

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Now, a Wall Street analyst wants Apple to manufacture an iPhone in the US and sell it at a higher price. Brian White for Drexel Hamilton believes that a market for such a product exists and that Apple will be well off to charge customers an extra $200 for the device. This, he believes will also help the company recuperate some of the additional costs which it will incur due to manufacturing the iPhone locally.

 

“There will be a lot of pressure to bring some manufacturing back to the U.S.,” White said. “If I were Apple, I would bring whatever they need to bring back — through the repatriation, because it may be connected — and they could market iPhones made in the U.S. and charge a premium.” Well, it’s a good thing that he isn’t Apple. Moving back to the US will be a massive logistical problem for the company, which will harm its operations a lot.

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Talking on the current relationship between the US and China, White believes that both countries need each other. Trump’s made a lot of controversial moves in his first week of office, one of which is withdrawal from the TPP. “Both countries need each other a lot,” White said. “Foxconn, for example, employees a million people working on Apple products in China. We, as consumers — the vast majority of consumers in the U.S. — enjoy lower prices. Both countries are winning based on the way things are set up.”

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