Apple Is Not Moving IPhone Production To The US: Gurman
Summary: Despite Trump’s claims, it seems that Apple is not moving its iPhone production to the US. This is according to Bloomberg’s Mark Gurman who emphatically says that this will never happen.
Future Apple iPhones could cost as much as $3,500. That headline itself should scare you, but thankfully, that might not be the case. Bloomberg’s Mark Gurman is debunking those claims. He also pointed out that “there is no universe where Apple moves iPhone production to the US.”
Tariffs forcing Apple’s hand
The $3,500 figure, suggested by analysts at Wedbush, is based on Trump’s recent tariffs, which affect pretty much every country around the world. In particular, they are hitting China pretty hard at 34%. In return, China retaliated with increased tariffs against the US at 54%. Since Apple is an American company that also has factories in China, this means there are a lot of tariffs to go around.
Some have suggested that Apple should move its production to the US. That way, it won’t have to pay import tariffs, or at least not as much as it will have to right now. However, as Gurman points out, that isn’t going to happen.
But why not? According to Vadim Yuryev of the YouTube channel Max Tech, “Completely agree. I’m not sure how many Americans would be able to handle a workload that repetitive for hours on end, especially for minimum wage (the only way it would be anywhere close to possible for Apple to make the numbers make sense).”
Apple’s move stateside
Earlier this year, Trump stated that Apple will move some of its production in Mexico over to the US. However, Apple hasn’t confirmed anything. It was also suggested that Trump could allow some companies, such as Tesla and Apple, to circumvent these tariffs or at least pay a reduced amount.
Apple recently announced a $500 billion investment in the US. Some believe it could have been its way of appeasing Trump and showing the company’s contribution to the American economy.
That being said, we have to wonder how Trump will react if Apple doesn’t move more of its production stateside. Will Trump no longer grant exemptions to Apple? Or is Apple’s contribution and size simply too great for Trump to mess around with?
