By Angel Soleil, | November 24, 2016
President-elect Donald Trump wants Apple to make its iPhone in the United States. (YouTube)
President-elect Donald Trump wants Apple to build its products in the United States instead of China. Trump said he has spoken to Apple CEO Tim Cook about the matter. However, the company has not confirmed that the call took place.
Trump has long been critical of Apple's use of Chinese manufacturing. The New York Times reported that during an interview, the president-elect recounted his conversation with Cook. He said that he told him how he wanted to build a big plant in the United States so Apple would not need to rely on China for manufacturing.
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But convincing Apple to move its manufacturing to the United States will not be easy. Steve Jobs had previously told President Obama that due to the decline of manufacturing jobs in the country, it is unlikely that Apple would be able to shift production.
Following Trump's previous threat of imposing tariffs on Chinese imports, Apple has reportedly asked its key manufacturing partners to research into the possibility of relocating its productions to the United States. According to Forbes, the initial findings were substandard because it proved time-consuming and inefficient for the company to make this move.
Apple's manufacturers in China help the company keep low costs. The company was able to manufacture the iPhone 7 in Asia for roughly $225, with assembly amounting to about two percent of the total cost. If Apple were to shift production base to the United States, its manufacturing cost is estimated to increase by $30 to $40 due to shipping components. If various components of the iPhone were to be made in the United States, Apple could be spending about $80 to $90 more.
At this point, Apple understands that relocating its production base from Asia to the United States is not quite feasible. Meanwhile, Trump appears to be dropping Cook's name to make it look like his plans are making progress. But as of date, Apple has not released an official statement regarding the matter.
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