US President Donald Trump urged Apple to shift manufacturing to the United States, but a U.S.-bound relocation of Apple’s supply chain is highly unlikely due to time, expense, and ongoing cost of higher wages in the US.
Trump criticized Apple’s decision to build part of its supply chain in India, referencing the company’s vow to invest $500 billion in the US over the next four years. However, industry analysts say that any major expansion would take years and carry significant costs.
In theory, the US could host final assembly of Apple products like the iPhone, but even that would result in higher prices for shoppers, who may turn to cheaper alternatives. Analysts estimate that it would cost $30 billion for Apple to shift 10% of its supply chain to the US, with a possible price hike of up to $3,500 per phone.
Despite Cook’s claims that the company already manufactures some components stateside, U.S.-based manufacturing makes up a small share of the company’s supply chain. Any significant expansion would require long-term investment and could lead to price increases that would render domestic manufacturing nearly impossible.
Industry analysts point out that Apple’s global supply chain is complex, making it challenging to relocate production entirely to the US. While some components are already made in the US, the majority of smartphones sold in the US still have India as their country of origin.
As a result, it remains unclear whether Trump’s vision for enticing manufacturers to open factories and build in the US will come to fruition.
Source: https://abcnews.go.com/Business/trump-apple-make-iphones-us-happen/story?id=121830445