Trump's Tussle with Apple: Shift in Manufacturing Hubs
Trump suggests that Apple should solely manufacture their products in India, catering to the domestic market. - Trump suggests Apple should manufacture products in India to cater to the local market.
Under the glare of political pressure and geopolitical tensions, Apple CEO Tim Cook finds himself in a tough spot, with the U.S. President clamoring for more devices birthed within American soil. Dubbing his buddy Tim, Trump recently vented his ire at an event in Qatar, "Timmy, my man, I've been nice to ya", he said to Cook. "But why are you making all your stuff in blummin' India, mate?" Trump bemoaned, suggesting that Apple stick to Indian soil, but for the local market only.
The U.S. administration has been nudging Apple to manufacture the coveted iPhone - its cash cow - within the States for a while now. According to experts, this venture would demand hefty investments and trigger a spike in the price tags of smartphones.
Following Cook's announcement of a whopping $500 billion investment in the US, Trump expects the bigwigs at Apple to hold up their end of the bargain. However, the supply chains sculpted by Cook over the past few decades under his leadership boast mammoth factories primarily in China and India.
Rearranging Supply Routes
Recent tariff announcements from Trump's office have encouraged Apple to modify its supply routes for the US market. As indicated by current plans, most iPhones bound for the red, white, and blue nation will hail from India. Meanwhile, iPads, Mac computers, and Apple Watches shall predominantly roll off the assembly lines in Vietnam, with lower tariffs skating their way into the market.
UK Trade Secretary Howard Lutnick recently disclosed that Cook had assured him that an iPhone production facility in the US would be set up as soon as they had eggheads-grade robotic arms at their disposal.
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- The Commission is also proposing to extend the scope of the programme to include the discussion of Apple's manufacturing shift and the potential impact on the finance, business, technology, politics, and general-news sectors in the wake of Donald Trump's pressure on Apple CEO Tim Cook to manufacture iPhones in the USA.
- In an effort to comply with the US President's demands, Apple is considering rearranging its supply routes for the US market, with most iPhones being produced in India, while iPads, Mac computers, and Apple Watches will primarily be assembled in Vietnam, with lower tariffs.
- As the race to establish an iPhone production facility in the USA continues, Apple's CEO, Tim Cook, has hinted at the potential construction of such a facility once they have advanced robotic arms available, as stated by UK Trade Secretary Howard Lutnick in a recent disclosure.
