U.S. President Donald Trump might have come to the realization that manufacturing iPhones locally will be a distant dream, though he previously claimed that the country possesses the resources to make this possible. During a formal announcement, Apple stated that it increased its investment in the U.S. to $600 billion, up by $100 billion from the previous $500 billion figure that will be injected over a period of four years. When questioned about the final assembly of products happening in the region, President Trump responded that it could be possible if CEO Tim Cook is incentivized enough.
During the formal announcement, President Trump mentioned that Apple has not made this kind of investment anywhere, likely to curb questions about the iPhone’s local manufacturing status
The massive investment from Apple is expected to create thousands of jobs in the U.S., but that does not negate the fact that the iPhone will continue to be assembled overseas. Even though President Trump would like nothing more for Apple than to establish its supply chain locally, it is a bitter reality that he cannot ignore. As reported by AppleInsider, during a press briefing, when Tim Cook was asked about the final assembly happening in the country, Trump responded by saying the following.
“He makes many of the components here, and we’ve been talking about it, and the whole thing is set up at other places, and it’s been there for a long time, so in terms of cost and all. But I think we may incentivize him enough that one day he’ll be bringing that — but he brings most of the stuff — look, he’s not making this kind of an investment anywhere else in the world, not even close.”
Even though Apple has attempted to reduce dependency on China and move iPhone assembly to India to appease the U.S. administration’s requirements as the trade crackdown continues, the Cupertino firm will continue to rely on a decades-old supply chain for any iPhone. Even if the company were to shift assembly to the U.S., a veteran reporter stated that the raw material, comprising 1,000 components that make up one device, would continue to originate from China.
Bloomberg’s Mark Gurman has previously commented that there is no universe where Apple will shift iPhone production to the U.S., with a separate analysis revealing that there are approximately 2,700 components found in a single iPhone, making the transition from China to the U.S. regarding production and assembly next to impossible. Assuming Trump maintains its tariffs on any Apple mobile device arriving from overseas, analyst Ming-Chi Kuo has stated that it would be wise for the company to absorb these costs to maintain profitability.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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