Several years before Donald J Mr. Trump carried a campaign for the president first by promising his supporters that he would force Apple to create these products in America.
After nearly a decade, a little changed. Instead of bringing its manufacturing home, Apple has turned some production from China to India, Vietnam and Thailand. There is almost nothing in America, and it is still estimated at 80 percent of iPhone devices made in China.
Despite the years of pressure, Apple works still depend on China to the extent that the technology giant cannot work without it. Movements by the Trump administration to change Apple’s behavior that risk destroying the world’s most valuable company. Any serious effort to transfer Apple production to the United States – if possible – will take an effort by the company and the federal government.
In the four days after President Trump announced taxes on Chinese Chinese, amounting to 145 percent last month, Apple lost $ 770 billion in the market value. Some of these losses regained after Mr. Trump gave consumer electronics manufacturers in China a temporary postponement.
On Thursday, Wall Street analysts expect that Apple will mention that sales have increased by 4 percent in the last quarter, in part due to the fact that people rushed to buy iPhone devices before the customs tariff began. The Wall Street report provides an opportunity for Apple CEO, Tim Cook, about the risk of future definitions, price increase and company future in China and the United States.
Apple spokesman refused to provide any of the company’s executives to this article. The company said this year that it will invest $ 500 billion in the United States over the next four years and begin to make artificial intelligence servers in Houston in 2026.
David Yovi, a professor at Harvard Business College who wrote case studies on Apple, said that the audit was justified because they are the most vulnerable company in a complete collapse of the United States and China. “
Jane Monster, the administrative partner at Deepwateer Asset Management, who invests in emerging technology companies, estimates that the complete collapse between the United States and China will reduce the value of Apple to half or more. It will decrease until a company worth $ 1.6 trillion from a 3.2 trillion dollar company because about a third of its sales is linked to the products made in China, even if it is some production to other countries. The value can decrease to $ 1.2 trillion if it lost its sales to Chinese customers, as its rival Samsung did after a dispute between the governments of South Korea and China’s governments. Beijing has already led to an iPhone inhibition Purchases by government employees.
A significant decrease in the Apple value would extend across the stock market. The company represents about 6 percent of the S&P 500 index. This means for every dollar invested in the box, about 6 cents goes to Apple shares. Investors, and most owners of 401 (K), will see that the share is lower in half.
Apple roots in China are depth. Decades ago, the company worked with Beijing to create manufacturing in China without creating a joint venture with a Chinese company, as required by many American companies. Then he mastered the art of assembled devices in an inexpensive manner in China and selling products to the growing middle class in the country. This mixture has gained more than 80 percent of global smartphone profits and achieved $ 67 billion in annual Chinese sales.
Over time, the company’s relations were strengthened in China. Today, most iPhone devices in China are not only made, but their Chinese suppliers also collect parts of the devices made in India and Manufacturing ingredients and AirPods In Vietnam.
The Apple’s dependence on its supply chain has made something of the Trump management Rorschach test, which wants to bring more electronics manufacturing to the United States. Apple has greater power than any other electronics company to achieve management goal. It makes smartphones more than anyone else and spends more money on the components more than competitors, giving them the tremendous impact on the place where their suppliers work.
Trump administration wants to start Apple. “The army of millions and millions of people who fix a small small bolts to make iPhone – this type of object will come to America,” said Huard Lottenic, in April, said that “the army of millions and millions of people who fix a small small screw for making iPhone – this type of object will come to America.”
But pressing Apple to leave China can reverse results. The new Apple tariffs can be forced to raise iPhone prices or accept smaller smartphone profits. Samsung phones, which are made in Vietnam and are not subject to Chinese definitions, can be cheaper. Apple can become less competitive at home – a red line rarely wants to cross.
Apple has resisted the manufacture of iPhone and other devices in the United States because the company’s operations team has decided that it would be impossible, two people who are familiar with the analysis that they spoke on the condition of anonymity were not disclosed. A decade ago, she had a bad experience Sources nails And finding reliable workers to assemble a Mac computer in Texas.
In China, Apple suppliers can combine 200,000 people. They are working in factories supervised by thousands of engineers with years of experience in manufacturing. Most of them live in dates near the iPhone factory, where shows and other components move below the assembly lines longer than the football field.
Wayne Lam, an analyst at Techinsights, a market research company, said that many experienced employees and engineers will be impossible in most American cities. He said that Apple will need to develop more automatic operations with robots to compensate for the smallest population in the United States.
Mr. Lam estimates that if Apple creates operations in the United States, you will need to impose $ 2000 for the iPhone – an increase of about $ 1,000 – to maintain its current profits. The price may decrease to $ 1500 in the coming years, as the company has reduced the costs of employee training and components.
“In the short term, it is not economically possible,” said Mr. Lam. He added that it is not logical to transfer the production of an almost 20 -year -old device and can be disabled with a new tool in which consumers flared up.
Apple showed a willingness to move her supply chain when there are incentives. In 2017, a process to make iPhone devices in India began because the country has high taxes on imports that would make prices to an extent that Apple could not demand a slide of the fastest smart phone market in the world.
Today, Apple manufactures about 20 percent of iPhone devices sold worldwide in India. It also makes some ingredients there, including metal frame. But it depends on Chinese companies to collect offers and other complex parts.
“India has not”, “Matthew Moore, who spent nine years as a manager for manufacturing design at Apple.
Mr. Moore believes that the Trump administration will need to invest in education to obtain scientific degrees in science, technology, engineering and mathematics. It is also believed that the country should encourage loans for new manufacturing facilities, as is the case for housing with Fannie Mae and Freddie Mac.
Last month, Apple bought itself as a temporary break. Mr. Cook, who personally donated a million dollars to clarify Mr. Trump, The Trump administration pressed For the exemption he gave to iPhone and other electronics of 145 percent tax on Chinese exports. It is temporary, though. The administration said it plans to issue more targeted tariffs on technical products.
Mr. Moore, who started Cruz, a company that makes products like mixers, said that without government investments, Apple and smaller manufacturers will continue to make things in China because they contain surplus equipment and engineers.
“I don’t think the ship has sailed, but it is absurd to think within four years, we will make iPhone devices here,” said Mr. Moore. “It will take 10 years.”
