It is more convenient to pay 25 % tariff to produce iPhone in the United States.

Apple would be more profitable to assume a 25 % ratio than moving iPhone production to your country.

Does it make sense to produce iPhone in the USA?

There is Trump Apple’s iPhone in the United States is a definite intention And to achieve this, he threatened 25 % to the entire iPhone that did not produce California in the country. The United States is one of the most important markets for Apple that approximately 60 million iPhones sell every year.

Is it interesting to move the production of these 60 million iPhones to the USA to avoid possible 25 %? Does not seem very logicalAnd the reasons are a few.

Why does Apple produce iPhone in the United States?

At least economically, It doesn’t make sense that Apple started to produce iPhone in the United StatesAs much as he wants Trump to be. It is worth paying 25 %tariff to such a extent.

1. Create a factory in the USA and the entire infrastructure

Apple’s first step Create the necessary opportunities to mount the iPhone. This is always associated with another company to traditionally produce the iPhone, traditionally, Foxconn.

Tim Cook with a Foxconn employee

It is difficult to move the production of iPhone in China to another place \

This can be a very expensive process, especially Equip these facilities Everything that is necessary with the machines that need to be imported from China. In addition, it is not something that can be done in the short term, everything can take several years. Apple is very expensive to expand to India and has been moving production for years.

2. Production in the USA

In addition to the transfer of all the materials and parts that make up the iPhone, taking into account the installation of the entire assembly line, in addition to the highest fees, Producing an iPhone in the United States can practically double times To produce in China.

It is estimated that the salary in China is 26 Yuan per hour to make an iPhone, about $ 3.63. The minimum wage in states such as California is $ 16.50 per hour. Practically 5 times more.

Accordingly New York TimesThe installation time of an iPhone is 350 minutes. Well About $ 21.17 in China and about 90.25 dollars in the United States. A big difference that will provide a lot of production costs.

3. China’s supply chain is not exceeded

In addition to all these problems, Everything is produced in China. So, iPhone batteries, glass crystals, cameras, processors are produced in Taiwan … So, most of the iPhone components are produced very close to where the iPhone is installed.

IPhone cover was removed

Most iPhone components are produced in China

Thus, the iPhone in the United States becomes more expensive. All The components produced in areas near China should be transferred to the United States.. This will increase the price of the last device again.

4. What will happen after Trump?

The most normal one These aggressive Trump policies are over when your mission is over. So, it would be less than 4 years. I don’t even think Apple could have an important factory in the United States at that time, so it’s not something that Apple is worth it.

In terms of profitability, Apple’s iPhone sold in the iPhone market is much better to accept 25 % tariff to move the iPhone assembly lines back to the United States. Ming-Chi Kuo, Apple Analyst.

All this and of course other reasons escaping from us, It doesn’t make sense for Apple to start producing iPhone in the United States. Even if Trump uploads, assuming that there is an extra 25 %tariff, it makes more sense economically. And Analyst Ming-Chi Kuo, an expert in analyzing Apple’s supply chain, is an opinion of many people, including.

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Source: i Padizate

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