Latest news with #MacPros
Business Mayor
23-05-2025
- Business
- Business Mayor
Trump says Apple must pay a 25% tariff on iPhones not made in the U.S.
Apple CEO Tim Cook, left, and President Donald Trump speak to the press during a tour of the Flextronics computer manufacturing facility in Austin, Texas, where Apple's Mac Pros are assembled, Nov. 20, 2019. Mandel Ngan | AFP | Getty Images President Donald Trump said in a social media post Friday that Apple will have to pay a tariff of 25% or more for iPhones made outside the United States. 'I have long ago informed Tim Cook of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,' Trump said on Truth Social. Shares of Apple fell about 2% on Friday after the post. Apple's flagship phone is produced primarily in China, but the company has been shifting manufacturing to India in part because that country has a friendlier trade relationship with the U.S. Some Wall Street analysts have estimated that moving iPhone production to the U.S. would raise the price of the Apple smartphone by at least 25%. Wedbush's Dan Ives put the estimated cost of a U.S. iPhone at $3,500. The iPhone 16 Pro currently retails for about $1,000. This is the latest jab at Apple from Trump, who over the past couple of weeks has ramped up pressure on the company and Cook to increase domestic manufacturing. Trump and Cook met at the White House on Tuesday, according to Politico. Treasury Secretary Scott Bessent said in an interview with Fox News on Friday that he was not part of the meeting at the White House but that the Apple situation could be part of the Trump administration's push to bring 'precision manufacturing' back to the U.S. 'A large part of Apple's components are in semiconductors. So we would like to have Apple help us make the semiconductor supply chain more secure,' Bessent said. Cook gave $1 million to Trump's inauguration fund and attended the inauguration in January. Apple has announced a $500 billion spend on U.S. development, including AI server production in Houston. Apple declined to comment for this story. The company said during its May 1 earnings report that it expects about $900 million in additional costs for tariffs in the current quarter. Cook said on the company's earnings call that the tariff outlook was 'very difficult to predict' past June. Foxconn, one of Apple's main iPhone assembly partners, is spending $1.5 billion on expanding its India facilities, the Financial Times reported Thursday. Trump has publicly criticized other major U.S. companies, including Walmart , during his trade war push, but the levies on a specific consumer product is a new step. The exact legal mechanism for the tariff is unclear. Trump followed up his post about Apple with another one calling for a 50% tariff on products from the European Union. Taken together, the posts point to trade tensions increasing again after the U.S. had temporarily lowered many of its levies, including in an agreement with China. Apple also had to navigate tariff threats during Trump's first term, when a 15% tariff on Chinese imports was being considered in 2019. At that time, Cook had a strong relationship with Trump and the final trade deal excluded core Apple products from the duties. As Apple is caught in the U.S. president's crosshairs, the company is also seeing weak demand in China. On Friday the company hiked trade-in incentives for iPhones in China. READ SOURCE
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First Post
18-05-2025
- Business
- First Post
Trump tariffs may push US iPhone users towards repair, instead of replace their old devices
Repair demand may increase if inflation and trade uncertainty continue to affect consumer spending habits. Inflation and trade uncertainty in the US may both be attributed to Trump tariffs read more US President Donald Trump and Apple CEO Tim Cook tour the Flextronics computer manufacturing facility where Apple's Mac Pros are assembled in Austin, Texas. Amid the tariff war with China, Trump wants Apple to manufacture its iPhones in the US. File image/AFP As US trade tensions with China threaten to increase the cost of imported goods, some smartphone users are choosing to repair ageing devices rather than upgrade to newer models. That's the decision one iPhone 12 Mini user made after learning that the phone's battery had degraded to about 80 per cent of its original capacity, according to an article published by The Verge. Rather than spend hundreds on a new device, the user opted for a $90 battery replacement, citing both economic uncertainty and personal preference for the phone's smaller size. STORY CONTINUES BELOW THIS AD The iPhone 12 Mini, released in 2020, is no longer in production. Despite early reviews that raised concerns about battery life, the compact design remains favored by users seeking a lighter, more portable phone. More from Tech China's LandSpace launches 6 satellites with methane-powered rocket Some owners have continued to use the model even as its software support and battery performance have begun to wane. The decision to repair rather than replace was partly driven by fears that new tariffs on electronics and components could push up prices in the near future. In early April, the Trump administration introduced sweeping tariffs on Chinese imports, which were followed by new export controls from China targeting rare earth elements essential to the production of high-tech goods. Apple, which relies heavily on international supply chains, has faced challenges during past disruptions. The company's just-in-time manufacturing model, while efficient, can be vulnerable to supply shocks. Experts say that if tariffs persist or expand, consumers may see higher prices on both new devices and replacement parts. Apple has only recently expanded its support for independent repairs, following pressure from regulators and consumer advocates. However, critics say the company's parts pairing requirements and limited availability of official components still pose barriers for many users. Repair demand may increase if inflation and trade uncertainty continue to affect consumer spending habits. STORY CONTINUES BELOW THIS AD According to Bloomberg, the Port of Los Angeles has reported a sharp drop in imports, a signal that broader supply chain constraints may be taking shape. While Apple offers newer models with updated features such as USB-C ports and improved cameras, some users say they see little benefit from annual upgrades, especially if their current phones continue to meet basic needs like calls, messaging, navigation and music. Apple has not commented on how ongoing trade tensions may affect its repair services or product pricing.
Yahoo
22-04-2025
- Business
- Yahoo
The Trump administration wants Apple to build iPhones in the U.S. — here's why that will be hard to pull off
When you buy through links on our articles, Future and its syndication partners may earn a commission. There's a big push to have iPhones built in America. And on paper it could create lots of jobs, from the final assembly of the phones to building the factories that will be needed to get those iPhones put together. Howard Lutnick, the U.S. Secretary of Commerce, appeared on the "Face the Nation" program on CBS News earlier this month to defend the Trump tariffs that have been reverberating through the global economy. During that interview, the commerce secretary spelled out a vision that included creating jobs for U.S. workers by taking the electronics manufacturing handled in other parts of the world — by and large, we're talking about China — and bringing that back to the U.S. As Lutnick explained on the April 6 broadcast, the key will be automated factories. "Who's going to build the factories? Who's going to operate the factories? Who's going to make them work? Great American workers," he said. "You know, we are going to replace ... the armies of millions of people screwing in little screws to make iPhones, that kind of thing is going to come to America," he added. A promise to bring back electronics manufacturing jobs from overseas — a process known as "reshoring" — has been bandied about by President Donald Trump dating back to his first term, and Lutnick's description is just the latest iteration of that pledge. To some, it's an appealing idea that's one of the cornerstones of the Trump administration's economic goals. It's also very unlikely to happen, and certainly not any time soon. Here's why. If Apple has bought into Lutnick's vision of U.S. based factories using automation to "screw in little screws to make iPhones," the company is keeping that to itself. I reached out to Apple to ask if the company has been in talks with the Trump administration on the prospect of producing iPhones stateside, but haven't heard back with a comment. To be fair to Apple, though, the company has let its money do some talking when it comes to some manufacturing initiatives. Back in February, the company announced it would spend more than $500 billion over the next four years to expand its U.S. operations. Included in those plans will be a facility in Houston where Apple will build servers for its Apple Intelligence efforts, along with other efforts aimed at bolstering manufacturing. That new investment builds on some commitments Apple has previously made, such as an Austin, Texas-based campus where the company makes Mac Pros. So yes, Apple does build products in the U.S., with plans to build even more. But a keen eye will detect that servers and Mac Pros aren't exactly the same thing as iPhones. "[Apple] is able to [build some Macs in the U.S.] because these are sold in the thousands or tens of thousands, not millions or tens of millions," said Techsponential lead analyst Avi Greengart, when I asked him to explain why Apple builds some products domestically but not others. "The tooling and tolerances of a desktop computer are also much more forgiving than smartphones." There's also the matter of cost, with the Mac Pro starting at $6,999. That's a bit steeper than the $599 Apple charges for its least expensive phone, the iPhone 16e. "The dollar amounts involved are higher [with the Mac Pro], masking the higher labor costs involved in setting up shop in the U.S," Greengart added. So that may explain iPhones aren't currently being built in the U.S. What's standing in the way of that production moving to these shores? Let's start with labor costs, with a big reason for production moving offshore being that workers earn lower wages in other markets. Even now, as IDC group vice president of worldwide device trackers Ryan Reith pointed out to my colleague Tom Pritchard for an article on the impact of the Trump tariffs on phones, more production is shifting to countries like India and Indonesia to deal with rising labor costs in China. In other words, forget about phone assembly jobs coming to America, where workers earn even more. That's why Lutnick's comments to CBS centered around automated factories. 'There's no way it would ever make sense, nor could it happen in my opinion, to have the complete end-to-end [manufacturing] solution done in the U.S." But phone production also happens to be centered overseas because that's where the parts that make up phones are assembled, too. There's an oft-told story about Apple switching the display on the original iPhone to glass in the six-month period between the phone's unveiling and its June 2007 launch. A number of lucky breaks made that last-minute change possible, but a big reason was that iPhone supplier Foxconn had the factory space to quickly turn around that order. That likely doesn't happen if production gets reshored. "Phones have parts from South Korea, Taiwan, China, the U.S., Japan, and more, and are dependent on critical inputs from an even longer list of places," Greengart said. The most likely scenario for iPhone assembly to be handled stateside would be for final assembly only to be handled in the U.S. 'There's no way it would ever make sense, nor could it happen in my opinion, to have the complete end-to-end solution done in the U.S.," IDC's Reith said. " It just doesn't make sense." But even focusing solely on final assembly would require a ramp-up effort to build factories and equip them with the necessary tools to put the finishing touches on smartphones. Reith estimates that it would be three years before small-scale production would be ready to go online, with mass production not ready for five years — and he described that timing to Tom's Guide as a best-case scenario. "It would be enormously expensive to build from scratch, labor costs would be higher, education in engineering and machine tooling would need to be created, immigration would need to be expanded, and the whole process would require massive automation," Greengart said. "At the end of that process, you might still end up with more expensive products, but they'd be mostly sourced and entirely built in the U.S." How much more would an iPhone made in the U.S. cost? Prior to the Trump administration scaling back some tariffs while temporarily exempting smartphones from the higher rates, Dan Ives, global head of technology research at financial services firm Wedbush Securities, went on CNN and claimed that a U.S.-built iPhone would cost $3,500. Even if that number seems fanciful, his assessment that a U.S.-built iPhone is a "fictional tale" seems like a reasonable claim, given what we know about all the obstacles standing in the way of that happening. As Greengart put it when talking tariffs with my colleague Tom Pritchard, there's business and political advantages to reshoring some manufacturing. "However, the current incentives, costs, and shifting regulatory environment do not encourage investing towards this outcome," he added. That certainly seems to be the case from my research into phone manufacturing. iPhone 17 Pro — all the rumors and leaks so far Here's how iPhone owners are trying to beat potential price hikes from tariffs Apple could launch two foldable devices in 2026
Mint
21-04-2025
- Business
- Mint
Why it's so difficult for robots to make your Nike sneakers
President Trump is betting that the threat of stiff tariffs on low-cost countries in Asia and elsewhere will pressure American companies to bring manufacturing—and jobs—back to the U.S. But high U.S. labor costs mean companies would have to find ways to replace human workers with machines. For some industries, that has proved surprisingly difficult. Indeed, a yearslong effort by Nike to shift part of its manufacturing from China, Indonesia and Vietnam to North America illustrates how tough it is for U.S. brands to wean themselves off the flexible, low-cost contract manufacturers that use armies of laborers to churn out an array of products for American consumers. Starting in 2015, Nike poured millions into an ambitious effort to partly automate what has always been a highly labor-intensive industry. At the time, rising labor costs in China and advances in manufacturing techniques such as 3-D printing opened the possibility of finding a new way to make shoes that would rely on fewer workers. The shoe giant turned to Flex, an American manufacturer that had helped Apple set up a complex factory in Texas to make Mac Pros. The goal: Make tens of millions of Nike sneakers at a new high-tech manufacturing site in Guadalajara, Mexico, by 2023. The plant would still include thousands of workers, but far fewer than are needed in Asia to make the same number of sneakers. If successful, the project could be a model for production in the U.S., according to some involved in the effort. Nike's competitors also sensed an opportunity to rethink a manufacturing model built around massive Asian factories where armies of cheap, skilled laborers stitch fabrics and glue soles to shoes by hand. 'It feels less modern and more like a Ford Model T production line combined with a Middle Ages cobbler's bench," said Kevin Haley, then the executive vice president of innovation at clothing maker Under Armour, in 2015. He pledged to use automation to make shoes in Baltimore, a project he called 'Project Glory." Around the same time, Adidas launched 'speedfactories" in Atlanta and Ansbach, Germany, with high-tech machinery that quickly spit out shoes, heralding 'a new era in footwear creation." 'If they want to move out of China and Vietnam, they have to have technology to do that differently," said Mike Dennison, Flex's then president, in 2016. Nike's effort was the boldest. The company aimed for large-scale automated production in under a decade, which it said would save on labor costs and allow it to deliver new models of shoes to Americans faster. Tom Fletcher, who oversaw the project for Flex, came into the effort feeling confident, having just built a highly complex Mac Pro factory for Apple in Austin, Texas. At the time, Apple had been looking to bring some manufacturing home. Flex pushed to rejigger production lines and use automation, trying to find as many ways as possible to minimize human interaction. That experience came in handy. Nike and Flex established new production lines that used machines commonly seen in electronics manufacturing—but rarely shoemaking—such as a 'pick and place" machine that is known for mounting components onto circuit boards. The machines were supposed to build the upper part of a shoe, knit fabric, add logos and glue the sole. The effort quickly ran into trouble. The robots struggled to handle the soft, squishy and stretchy parts that are integral to shoemaking. Shoe fabrics also expand and contract depending on the temperature, while in shoemaking no two soles are exactly alike. Human workers can adapt to such challenges, but it proved difficult for machines. 'You're trying to do something very precise and then it gets a little colder or warmer, and the material changes on you," said Fletcher. 'We did not anticipate that." Adidas faced challenges producing complex shoes with robots. As a result, factory production never became as automated as envisioned. As shoe production increased, the factory personnel swelled to 5,000, about twice as many as originally planned and costing more than a similar workforce in Vietnam. Task after task proved challenging to automate, like the delicate work of gluing soles to the upper part of the shoe. 'If you didn't lay it the right way, there would be a noticeable twisting of the shoe, a misalignment that aesthetically means it would fail quality tests," said Fletcher. A central problem was also the huge variety of shoes Nike produces. For decades, American consumer companies have given designers nearly unlimited freedom to dream up the coolest products and relied on Asian manufacturers to deliver them. And unlike cars or iPhones, shoe models are changing all the time. But automating manufacturing means designing simple products that machines can undertake over and over again. Electronics manufacturing uses hard, standardized materials, allowing machines to replicate the same step millions of times. 'You have to make sacrifices from how to design to the complexity of the materials and models you'll work with," said Michael Newton, the former Nike executive who oversaw the project. 'That goes against what the consumer wants. They want incredible diversity of product." At one point, it took the Flex team eight months to figure out how to automate a way to put the Nike swish on a shoe, only for Nike to move onto a new shoe line for which the method Flex developed no longer worked. Newton said it would have been easier to mass-produce uncomplicated shoes, such as ones with a machine-knit upper part and matched with simple molded bottoms. But Nike was unwilling to put limits on its designs and expected manufacturers to produce whatever new shoes their teams dreamed up. 'Manufacturing, in a lot of ways, did not have an equal seat at the table," Fletcher said. By 2017, Flex's investors were balking at rising costs at the company, with some questioning why an outfit that makes electronics was involved in shoe production. Flex and Nike wound up the project by early 2019. By then, Under Armour had stopped mentioning to investors its 'Project Glory" mission to make shoes in the U.S. That year Adidas, which had also faced challenges producing complex shoes with robots, said it would close down production in Atlanta and Germany. It shipped its 'speedfactory" technology to suppliers in Asia. The three shoemakers stuck with their original offshore locations—Vietnam, China, and Indonesia—even after pandemic-era factory shutdowns showed the risk of having such a concentrated node of production. Adidas, Under Armour and Nike declined to comment on their past reshoring efforts. Representatives for Nike and Under Armour said the companies are working out responses to tariffs. Now, China, Vietnam and Indonesia are in Trump's sights. Earlier this month, he placed tariffs of 46% and 32% on Vietnam and Indonesia, respectively, before lowering them to 10% and granting them a 90-day reprieve. The U.S. raised tariffs on imports from China to 145%. Commerce Secretary Howard Lutnick has said the administration wants labor-intensive industries to return to the U.S. There will be an 'army of millions and millions of people screwing in little, little screws to make iPhones," he said in a recent interview with CBS. Apple makes virtually all of its iPhones in low-cost countries such as China and India. The threat of new tariffs is pushing some to ask whether Nike and others will ultimately have to reconsider efforts to automate manufacturing and bring shoe production back to the U.S. Newton and Fletcher think it still could be done, although it wouldn't be easy. 'You need to have some deep pockets and some patience because it's not going to happen fast," said Fletcher. The previous experience 'was humbling, for sure." Write to Jon Emont at
Yahoo
24-02-2025
- Business
- Yahoo
Apple's $500 billion plan to woo Trump shows that Tim Cook is '10% politician,' analyst says
Apple's (AAPL) new $500 billion investment plan is winning over President Donald Trump — and proving that CEO Tim Cook knows how to play ball. 'Cook continues to prove that he is 10% politician and 90% CEO,' Wedbush Securities analyst Dan Ives wrote in a note following Apple's announcement, which won instant praise from the president. The iPhone maker plans to spread its cash out across the next four years, coinciding with Trump's second term in office. Apple said it will launch an education initiative, double an existing $5 billion domestic manufacturing fund, and hire roughly 20,000 full-time workers. In a statement, Cook said Apple is 'bullish on the future of American innovation, and we're proud to build on our long-standing U.S. investments with this $500 billion commitment to our country's future.' Although neither Cook nor Apple's news release mentioned Trump by name, the president appears to have been well aware of their plans. On Friday, Trump told a group of governors that Apple had 'stopped two plants in Mexico' and would boost its U.S. presence. Although the president had expected Apple to spend just hundreds of millions of dollars, not hundreds of billions, according to Bloomberg News. Trump quickly followed Apple's announcement by writing on Truth Social, his social media platform, that Apple 'wouldn't be investing 10 cents' without 'faith in what we are doing.' He also thanked both Cook and the company. It's a clear bid by Apple to help navigate the murkiness of Trump's trade war with China, which began earlier this month. Cook, Ives wrote, will likely use his connections to world leaders to help ensure 'smoother waters' for his firm as Trump pursues his trade war. 'They don't want to be in the tariffs,' Trump said of Apple on Friday. Cook enjoyed a relatively stable relationship with Trump during his first term, occasionally winning the president's praise. Last month, he donated to and attended Trump's inauguration, standing alongside several other major tech leaders including Tesla's (TSLA) Elon Musk and Google's (GOOGL) Sundar Pichai. The CEO built his goodwill with the president through focused one-on-one phone calls and meetings, close relationships with Trump's family, and a willingness to let things slide, according to the Wall Street Journal. In 2018, after Apple announced a $350 billion investment plan, Trump called Cook to personally thank him. That all paid off in 2019, when Cook convinced Trump to give Apple an exemption from a series of tariffs affecting Chinese imports. In return, Cook gifted the president with one of the first Mac Pros built at a new U.S. facility. For the latest news, Facebook, Twitter and Instagram. Sign in to access your portfolio
