Like the desire of President Donald Trump, iPhone production in the USA is technically possible. However, the result will be a significant production cost per unit – this will probably be reflected in the final value of the product.
This is the estimated of a new report published by Bank of America, who analyzes Trump’s latest measures and Chinese President Xi Jingping. Despite the 90 -day global pause, it was approved on 9 Wednesdays and expanded the tax collected to the US Asian products to 125%.
On the other hand, China itself put a rate of 84% under US products by 84%. Even Tiktok, who was about instability and instability in the negotiations between the two countries, is now at risk.
Why does it produce iPhone in the USA?
According to the survey, Production of iPhone will automatically increase by 25% in the USA only due to labor reasons.. The labor cost and other employees related to employees in the country are much larger than the regions where devices such as China and India are currently built.
However, most of the increase in cost, “An important part of certain components that need to be produced in China “At least in the short term, and only then, it was moved to the final assembly of models in the USA. Thanks to the rates applied between the two countries right now, American iPhone’s value can be higher than 90%.
https://www.youtube.com/watch?v=5bizrjxysq8
Another point that Bank of America does not take into account and is equally important is the structure. The production lines of Apple’s partnership in China, Foxconn, are ready to produce highly automation and mass products and parts. It would take a high investment and time to reach the same level in the US – and the smartphone stock may be affected until this happens.
What is the solution for Apple?
In addition, according to the report, Apple’s at least a possibility for transferring the assembly of devices to the USA Negotiate tax exemptions in partially ready components and devices in other countries..
However, the analysts do not see this solution as anything especially for the instability of Trump’s actions – this paused a week after the official announcement of existing global trade tariffs and expanded tensions with China.
Until this is dissolved, Apple himself should wait before choosing to transfer a portion of the industrial structure or transfer some of them. The brand can also expand the diversification of the countries that take these steps, and can bet more in India – this is more likely to negotiate Trump’s tariff – or other regions without the existence of the company.
In Brazil, the latest assembly of iPhones was made by Foxconn in Jundiaí, the inner part of São Paulo. Import rates, which are now suspended for Brazil products, have been fixed to 10%. This will make the country a suitable alternative to expand production instead of nations with higher percentages. taxes.
In addition, if the final assembly of iPhones is done even in the United States, as Trump said, “Workers, labor and resources” Apple probably absorbs some of the expenses using their own income. This will reduce the brand’s profit margin with the device, but it also partially reduces the increase in the ultimate value of the product.
Apple has not officially comment on the case so far. The company’s shares have fallen, a 12% decrease in the last six months and bad performance, especially in recent days when tariffs come into force.
Apple’s latest version of mobile phones is the iPhone 16e, the most affordable version of the line. Check out Tecmundo’s views on the product!
Source: Tec Mundo
I’m Ben Stock, a highly experienced and passionate journalist with a career in the news industry spanning more than 10 years. I specialize in writing content for websites, including researching and interviewing sources to produce engaging articles. My current role is as an author at Gadget Onus, where I mainly cover the mobile section.
