President Trump intensified demands on Apple by insisting the company start manufacturing iPhones within the United States or face tariffs of at least 25% on devices produced overseas.
This demand marks the latest episode in a prolonged effort stretching back to 2016, when Trump pledged to voters that Apple would bring production of its computers and devices back to America.
Contrary to that promise, Apple has shifted much of its manufacturing away from China to other Asian nations such as India, Vietnam, and Thailand. Currently, nearly 80% of iPhones remain assembled in China, with minimal production occurring on U.S. soil.
Is U.S.-based iPhone Manufacturing Feasible?
Technically, Apple could produce iPhones domestically. However, experts caution that the endeavor would be costly and complicated, potentially forcing retail prices to soar above $2,000 per device. According to analysts, Apple would need to invest in new machinery and increase automation to offset the smaller U.S. labor pool compared to China.
One industry analyst described the idea as "impractical," emphasizing that it is not economically viable in the near term.
Some advantages to relocating production stateside include reducing the environmental impact associated with international shipping. Yet, former manufacturing experts highlight that these benefits are minimal compared to the significant obstacles involved.
Why Has Apple Not Relocated Manufacturing to the U.S.?
Supply chain specialists warn that transitioning iPhone production to the U.S. by 2025 would be unwise. Considering the product’s nearly two-decade lifespan and Apple's anticipation that future consumer devices may replace the iPhone, committing substantial capital to domestic manufacturing could result in unrecovered investments.
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