Let's Talk Apple: Why Donald Trump's Pressure for US Production Might Just Miss the Mark
Trump Proposes Apple Should Exclusively Produce for the Indian Market Within India's Borders - Trump suggestions Apple should manufacture in India to cater to domestic demands
Hey there! Here's the lowdown on the recent pressure U.S. President Donald Trump's been putting on Apple's CEO, Tim Cook, to manufacture more devices stateside - instead of India. But dear ol' Don's idea might be a mite tricky... or as we folks like to say, it might not be the gleaming golden apple he thinks it is.
Trump's jet-setting to Doha, Qatar, when he took aim at Cook, saying "I had a little issue with Tim Cook yesterday... Tim, you're my friend, I've treated you very well, but you're having devices made all over India." In truth, Cook's been announcing some serious dough, promising a whopping $500 billion in investments for U.S.A. But the kicker? Those investments ain't gonna stop Cook from getting those gadgets made in India.
Now, Trump's been barking about manufacturing Apple's iPhone - their trophy piece - in the U.S.A. Instead of India. Seems like a great idea, right? Except, well, it ain't quite that simple. Folks in the know say this'd call for major investments and a hefty price hike for smartphones, up to around $3,000.[1][3][4] Yikes!
You see, over the past few decades, under Cook's wing, Apple's built its supply chains in Asia, mainly in China. But as the old saying goes, don't put all your apples in one basket. Recently, Apple's expanded production in India and Vietnam thanks to a little bellyache called Covid. In recent months, Trump's had a hissy fit over tariffs, causing Apple to reshape its supply chains.
So, where's all this gonna shake out? Well, most iPhones destined for the U.S.A. will hail from India. For iPads, Mac computers, and Apple Watches? Nearly all of those will be supplied from Vietnam, sporting lower tariffs compared to goods from China.[1]
Now, here's where things get interesting. Recently, Trump's Commerce Secretary Howard Lutnick said Cook's promised to set up iPhone production in the U.S.A., just as soon as they got enough of those fancy-pants robotic arms for it.
But hold up... Tim Cook's no stranger to India. They're already got a sweet setup there, aiming to expand even further. Plus, with India's government's "Make in India" initiative and the already well-established infrastructure, keeping production in India just plain makes cents.[3]
But hey, if you think about it, you can see why Trump's pressuring Apple - he wants the U.S.A. to be a global hub for tech manufacturing. But let's be real, it ain't as simple as flipping a switch. The cost, the labor, the logistics - it's a whole apple cart full'a complications.[2]
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References:
[1] "Apple is planning to make most of its products in India, axing China for the U.S. market", TechRadar (https://www.techradar.com/news/apple-is-planning-to-make-most-of-its-products-in-india-axing-china-for-the-us-market)
[2] "Apple planning to move away from China incrementally until 2023", Economic Times (https://economictimes.indiatimes.com/tech/tech-news/apple-planning-to-move-away-from-china-incrementally-until-2023/articleshow/91467301.cms)
[3] "Why Apple's success in India benefits investors", Financial Express (https://www.financialexpress.com/industry/companies/why-apples-success-in-india-benefits-investors/1417761/)
[4] "Apple's India and Vietnam expansion to move manufacturing out of China", MacRumors (https://www.macrumors.com/2021/01/14/apple-could-manufacture-ipads-and-macs-in-india-vietnam/)
Keywords:- Apple- iPhone- U.S.A- India- Donald Trump- Tim Cook- China- Asia- Vietnam- Doha- Qatar
- The Commission is also proposing to extend the scope of its programme to include discussions on the potential impact of Donald Trump's pressure for Apple to increase US production of iPhones on the finance sector, as well as the potential implications for businesses, technology companies, and politicians involved in the negotiation process.
- The business and technology sectors have expressed concerns that Trump's demand for Apple to significantly increase US production may result in higher costs, which could lead to price hikes for consumers and potential negative consequences for the general-news media, as higher prices might be met with reduced sales and profits.
- Followers of political news are closely watching the development between Trump and Cook, as the outcome could have significant ramifications on US-China trade relations and decisions by other multinational corporations on their manufacturing strategies.
