News Trump tells Apple CEO Tim Cook 'I don't want you building in India,' says Apple will increase U.S. manufacturing

[Admin]

President Trump says he told Apple CEO Tim Cook to stop building plants in India and make devices in the U.S. instead.

Trump tells Apple CEO Tim Cook 'I don't want you building in India,' says Apple will increase U.S. manufacturing : Read more

 

[-Fran-]

I wonder what the "or else..." was.

Regards.

 

[Roland Of Gilead]

If only Mr. Trump's imagined conversations were real! Then this might actually mean something. The man who paraphrases his own paraphrasing, can hardly complete a single sentence, so we can take this with a pinch of salt.

With that said, don't Apple make ridiculous margins on their iPhones? Even if there were a 25% increase in labour costs for moving more production to the US, Apple can easily absorb that, and still have huge margins.

 

[Notton]

With that said, don't Apple make ridiculous margins on their iPhones? Even if there were a 25% increase in labour costs for moving more production to the US, Apple can easily absorb that, and still have huge margins.

Well, an analyst estimates an iphone would cost $3500, or triple what they currently go for.
Another analyst thinks it's only 30%.
Either way, that's above the margin.
And no, people will not buy that.

 

[NinoPino]

Well, an analyst estimates an iphone would cost $3500, or triple what they currently go for.
Another analyst thinks it's only 30%.
Either way, that's above the margin.
And no, people will not buy that.

Assembling in the USA, can affect the total cost of a product only marginally, probably few percent, because all the components will cost the same as before.
$3500 per phone or triple cost are only fantasy numbers in this case.

 

[aldaia]

Assembling in the USA, can affect the total cost of a product only marginally, probably few percent, because all the components will cost the same as before.
$3500 per phone or triple cost are only fantasy numbers in this case.

Not if ALL the components are also made in USA. I remember reading that estimation, the $3500 figure assumes the iPhone is 100% made in USA and 100% of its components are 100% made in USA, not only assembled in USA.

 

[rmiller1959]

If only Mr. Trump's imagined conversations were real! Then this might actually mean something. The man who paraphrases his own paraphrasing, can hardly complete a single sentence, so we can take this with a pinch of salt.

This. Far too many of his conversations with 'very important people' have turned out to be products of his own imagination.

 

[ianpac1969]

Trump : Mr Tim Apple please, please I beg you build something in America. I am desperate
Cook: Sure thing Mr President. We will print our warranty leaflets in America.
Trump: Major win, Huge win, millions of jobs will be created

LOL Apple did not become one of the wealthiest corporations ever by listening to Trump and his whole tariff project is crumbling to dust.

 

[NinoPino]

Not if ALL the components are also made in USA. I remember reading that estimation, the $3500 figure assumes the iPhone is 100% made in USA and 100% of its components are 100% made in USA, not only assembled in USA.

But this is not the case. And will be not for many, many years.

 

[thesyndrome]

With that said, don't Apple make ridiculous margins on their iPhones? Even if there were a 25% increase in labour costs for moving more production to the US, Apple can easily absorb that, and still have huge margins.

Counter point: why on earth would they do that, when they could just pass on the extra cost to the consumer and increase the price of the phone, like every other tech company has been doing?

The idea that 'implementing tariffs will mean business cover the extra costs' is basically in the same category as 'trickle-down economics': wishful thinking on the part of the general public, when the people who actually make these decisions know for a fact that it doesn't work like that, but it benefits them greatly to implement these policies and then give the public a comforting but ultimately untrue statement about how it MIGHT benefit them, but it never does.

It's been nearly 45 years and I'm still waiting for the wealth to 'trickle down'.

 

[Roland Of Gilead]

Counter point: why on earth would they do that, when they could just pass on the extra cost to the consumer and increase the price of the phone, like every other tech company has been doing?

Yes, very true. Maybe I'm naïve and believe in the interests of maintaining high sales, they might do that! 🫣

Joking aside. Yes, it's highly likely any increase in costs will go back on the consumer. This is the way!

 

[derekullo]

I might be meeting with you even though I'm toasted
But in 4 years, I'll still be CEO and you'll still be roasted!

 

[nameless0ne]

Why would Apple invest billions in USA manufacturing when there are still loopholes to be exploited? And in 4 years Trump will be gone. Both Democrats and Republicans dislike tariffs. Those will likely be gone with Trump irrespective on who remains in power. And then Apple would be stuck with USA factories that produce pricier products than competitors.
Currently Apple only produces top end devices in USA. Those are low volume halo products. And even that has caused them many headaches with articles documenting that even on this site.