The US president-elect Donald Trump had pressured Apple and some of its assemblers, Foxconn and Pegatron, to move back its production to the US. His advocacy of making America great again urges companies, like Apple, to bring back jobs to the United States.
The key assemblers of the famous iPhones, Hon Hai Precision Industry aka Foxconn Technology Group and Pegatron, are reevaluating their capacity to transfer Apple mobiles' production in the US. Reports have it that Apple asked both companies to look for ways to shift their iPhone production in June.
Foxconn confirmed that they would follow Apple's instruction while Pegatron declined due to some budget hurdles. According to reports, Foxconn CEO Terry Gou shared that he had second thoughts about the plan at first since the associated cost for production would multiply in many folds.
During Donald Trump's campaign period, he promised a 35% tariff to be collected if a product like Apple's iPhone will be manufactured overseas. This gives US companies a huge incentive if they transfer their manufacturing to the US.
Mit #Trump gehen die USA unter, prophezeiten Medien: Apple erwägt Rückverlegung der iPhone-Produktion in die USA!
:)https://t.co/Va5nWVI043— Hartes Geld (@HartesGeld) November 19, 2016
According to Apple Insider, Taiwan Semiconductor Manufacturing Company Limited expressed that this move of making iPhone chips outside Taiwan can cost much for Apple. If this will push through, many iPhone buyers will withdraw or halt their orders.
Apple has a list of suppliers in making the high-end smartphone. And to demand that the iPhone manufacturing be moved back in the United States is quite unmanageable since there is a scarcity of suppliers who could cater the needs of Apple.
Apple CEO Tim Cook expressed that even if Donald Trump imposes a higher tariff, manufacturers are still possible to continue the production overseas. As long as the total operational and production cost are lower, then maybe Trump's request would be favorable.
We can recall that the president-elect Trump tried to persuade people to boycott Apple during his campaign period. Do you think Apple will give in to his demands?
Will Donald Trump make America great again by bringing these manufacturers back in the United States? Share your thoughts below.
