President Trump demands that Apple move iPhone factories to America or pay a 25 percent tax. The tech company faces tough choices about where to build phones. Analyst Ming-Chi Kuo thinks Apple should pay the extra fees rather than relocate production. Moving entire assembly lines would cost billions of dollars and take years. The company would need to hire thousands of skilled workers.
Apple has already started moving some operations away from China after earlier trade disputes. The firm used creative methods to transport equipment to other countries. Trump believes America can easily handle iPhone manufacturing. Bloomberg reporter Mark Gurman disagrees and says production would be much slower. Higher labor costs would force Apple to charge customers much more money.
The president considers Tim Cook a friend but dislikes his factory choices overseas. Some Apple products, like MacBooks, might work for American manufacturing. These computers are made in much smaller volumes than smartphones. iPhones require massive production capacity that would be difficult to replicate. Apple will likely choose to pay tariffs over rebuilding its entire supply system.
Apple has already started moving some operations away from China after earlier trade disputes. The firm used creative methods to transport equipment to other countries. Trump believes America can easily handle iPhone manufacturing. Bloomberg reporter Mark Gurman disagrees and says production would be much slower. Higher labor costs would force Apple to charge customers much more money.
The president considers Tim Cook a friend but dislikes his factory choices overseas. Some Apple products, like MacBooks, might work for American manufacturing. These computers are made in much smaller volumes than smartphones. iPhones require massive production capacity that would be difficult to replicate. Apple will likely choose to pay tariffs over rebuilding its entire supply system.
