“Yesterday I had a small problem with Tim Cook,” Trump said on Thursday in Qatar. “I told him:” Tim, you are my friend. I treated you very well. You come from $ 500 billion. “But now I hear that you are building in all of India. I don't want you to build in India,” quotes CNN.
Trump has historically imposed high duties on virtually all goods imported to the United States to stimulate domestic production and improve commercial balance.
Although some companies, including Apple, have announced plans to increase production in the United States to avoid high duties, the construction of factories takes years, and the American workforce remains the road – notes CNN.
Tim Cook said In an interview with analysts at the beginning of this month, he expected that “most of the iPhones sold in the US will come from India.” Currently about 90 percent iPhones, the most profitable Apple product, is still produced in China.
In turn, Vietnam will become a source of almost all iPads, Mac computers, Apple Watch and Airpods sold in the USA – announced the head of Apple.
See also: 600 tons of iPhones in planes from India. Sly plan to Apple for a lower duty
Apple puts on India
Apple has been working on the transfer of part of the iPhone production to India for years, building new factories in this country and employing employees. The company is not able to produce iPhones in the United States and taking into account the complexity of the supply chain, it probably will not produce its most popular product in America in the near future.
Although Trump's administration really wants Apple to transfer iPhones to the USA, analysts say that achieving this goal is almost impossible due to high costs.
According to Dan Ives of the Wedbush Securities The iPhone price could increase three times up to $ 3500 if it was produced in this country.
Apple previously announced in February a plan worth $ 500 billion. for the expansion of plants in the USA over the next four years, which will create 20 thousand. jobs.
The investment is based on previous Apple efforts aimed at expanding the supply chain outside China in recent years, partly in response to production problems in the country during a pandemic. These investments include an increase in the production of Mac Pro in Texas.
Source: CNN
