San Francisco (AP) – The administration of President Donald Trump has planned its tariff dam targeting China will push Apple (AAPL) to manufacture the iPhone in the United States for the first time.
But it is an improbable scenario even with American prices which are now held 145% on products manufactured in China – the country where Apple manufactured most of its iPhones since the first model struck the market 18 years ago.
The deterrents for apples change its production at the national level include a complex supply chain that it began to build in China in the 1990s. It would take several years and cost billions of dollars to build new factories in the United States, then face Apple to the economic forces that could triple the price of an iPhone, threatening the sales of torpedoes of its renowned product.
Since 13:23:02 PM Edt. Market open.
“The concept of manufacturing iphones in the United States is a non-starter,” said Dan Ives, Wedbush Securities analyst, reflecting an opinion largely in the investment community that follows each Apple movement. He estimated that the current price of $ 1,000 for an iPhone manufactured in China, or in India would increase to more than $ 3,000 if production was deployed in the United States and that he thinks that the movement of production at the national level could probably not be made that, as soon as possible, 2028. “The prices would move so radically, it is difficult to understand.”
Apple did not respond to a comment request Wednesday. Cupertino’s company, California has not yet discussed its response to Trump’s prices on China, but the subject could resolve on May 1 when Apple CEO, Tim Cook, must answer analysts’ questions during a quarterly call conference to discuss the company’s results and financial strategy.
And there is no doubt that China’s prices will be a hot button problem since Apple’s action has dropped by almost 20% and lowered the business value of the company by $ 600 billion since Trump began to increase them on April 2.
If the prices are maintained, Apple should possibly increase prices on iPhones and other popular products, because the Silicon Valley supply chain is so highly concentrated in China, India and other foreign markets caught in the cross -fire of the climbing of trade war.
The big question is how much Apple could be ready to maintain the line on its current prices before the results of the prices on the beneficiary margins of the company becomes too much to wear and consumers are invited to assume part of the burden.
One of the main reasons why Apple has a room for maneuver to keep the line on its current iPhone prices while China prices remain in place is that the company continues to collect enormous margins of income generated by subscriptions and other services related to its product, said the Forrester Research analyst, Dipanjan Chatterjee. This division, which raised $ 96 billion in revenues during the last exercise of Apple, remains intact by Trump’s prices.
