Latest news with #iPhoneProduction
CNN
28-05-2025
- Business
- CNN
Why Apple doesn't make iPhones in America – and probably won't
In 2011, then-President Barack Obama pressed Apple CEO Steve Jobs on what it would take to bring iPhone production to the United States, according to The New York Times. Fourteen years later, President Donald Trump is resurfacing that question to current Apple CEO Tim Cook – and the stakes are a lot higher. Trump threatened a hefty 25% tariff against Apple and other smartphone companies unless they manufacture phones sold in the US stateside. '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,' Trump posted on Truth Social on Friday. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' Earlier this month, Apple CEO Tim Cook said he expected the majority of US-bound iPhones to be shipped from India. Reviving US manufacturing has been a tentpole goal of Trump's presidency. Within the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad in an effort to boost jobs in the US and rebalance what he saw as unfair practices by America's trading partners. But experts who spoke with CNN said making iPhones in the United States would upend the way Apple builds its most lucrative product. Moving iPhone production to the US would mean shifting away from countries like China and India that have the highly specialized workforce and skills needed to produce the millions of iPhones that Apple ships each year. The result could mean price hikes or design changes for the iPhone, some analysts estimate. 'It just fundamentally doesn't work,' said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester. Apple did not respond to CNN's request for comment on whether it plans to shift iPhone production to the US. China already has a sprawling system of plants tailored specifically for assembling electronics. Foxconn, Apple's longtime iPhone assembly partner, employs 900,000 people in its peak season, although it's unclear how much of that employment occurs in China and is related to iPhone work. Workers live in dormitories, making it easier to shift production plans with little notice, as Chatterjee points out. Production processes are highly specialized depending on the product; it's not a 'one size fits all' approach that's easy to replicate. 'The expertise to make each of the components is something that has to be worked on for a long period of time,' said David Marcotte, senior vice president at international market research company Kantar. There's also the question of whether there's enough demand for factory jobs in America. Manufacturing has been on the decline in the United States, with only 8% of American workers holding jobs in that sector as of earlier this year compared to roughly 26% in 1970, according to the Bureau of Labor Statistics, And a lot has changed since 1970. Carolyn Lee, executive director of the Manufacturing Institute, previously told CNN that 'the job has very much changed' and that modern manufacturing roles involve skills like coding and data analytics. Apple said in February that it plans to invest $500 billion in growing its US footprint over the next four years, which will go towards boosting its research and development efforts, opening a new facility to manufacture servers to support its Apple Intelligence software features and launching a Detroit academy to teach companies about smart manufacturing techniques and AI. Trump has declared this investment – along with a $100 billion commitment from Taiwan-based chipmaker TSMC to expand in the US – a political win and a step towards onshoring more tech production. But Apple's academy will be for small-to medium-sized businesses, according to Apple's press release, not training workers or building infrastructure to produce iPhones the way it is done in China or India. Cook has acknowledged the gap in labor required to produce iPhones in the US. Speaking at a Fortune Magazine event in 2017, he described the manufacturing environment in China as providing a combination of 'craftsman' skills, 'sophisticated robotics' and 'the computer science world.' 'That intersection, which is very rare to find anywhere, that kind of skill, which is very important for our business because of the precision and quality level that we like,' he said. Mohit Kumar, CEO and founder of smart ring maker Ultrahuman, has firsthand experience shifting production of a tech product to the US from India. Ultrahuman began producing its finger-worn health tracker in Texas in November after partnering with electronics manufacturer SVtronics. The smart ring company automated more tasks to avoid higher labor costs in the United States and hired workers that were trained in multiple steps of the process – such as casting and polishing rings – rather than just one of those steps, he told CNN. The topic came up in April, with US Commerce Secretary Howard Lutnick telling CNBC that Cook said Apple needs 'robotic arms' to build iPhones in the United States at the same scale and precision as its facilities abroad. Patrick Moorhead, founder and CEO of analysis firm Moor Insights & Strategy, thinks Apple could feasibly shift some iPhone production to the US in five years. But that would involve automating some processes to account for the skill gap in America compared to China and India, he says. That could also involve changing the iPhone's design to accommodate more automation, such as changing how certain components are glued together. Many of Apple's suppliers are based in China, so transitioning to the US even just for assembly would mean shifting further away from critical components. Dan Ives, global head of technology research for Wedbush Securities, told CNN last month via email that an estimated 90% of the iPhone's production process takes place in China, although he says that number is closer to 40% now that Apple has shifted more production to India. He has also estimated that making iPhones in the United States could triple the price of the device. Apple is faced with a tough decision either way, says Forrester's Chatterjee, despite Cook's meeting with Trump last week and the $1 million donation he made to Trump's inauguration, according to Axios. 'Because neither can you realistically, from an economic standpoint, bring production to the US, nor is it really tenable in this climate to say, 'No, I won't do that,'' he said. 'So you've got to walk that fine line, that tightrope, for as long as you can.'
CNN
28-05-2025
- Business
- CNN
Why Apple doesn't make iPhones in America – and probably won't
In 2011, then-President Barack Obama pressed Apple CEO Steve Jobs on what it would take to bring iPhone production to the United States, according to The New York Times. Fourteen years later, President Donald Trump is resurfacing that question to current Apple CEO Tim Cook – and the stakes are a lot higher. Trump threatened a hefty 25% tariff against Apple and other smartphone companies unless they manufacture phones sold in the US stateside. '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,' Trump posted on Truth Social on Friday. 'If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.' Earlier this month, Apple CEO Tim Cook said he expected the majority of US-bound iPhones to be shipped from India. Reviving US manufacturing has been a tentpole goal of Trump's presidency. Within the first three months of his second term, he went on a tariff blitz, promising to impose levies on nearly every product made abroad in an effort to boost jobs in the US and rebalance what he saw as unfair practices by America's trading partners. But experts who spoke with CNN said making iPhones in the United States would upend the way Apple builds its most lucrative product. Moving iPhone production to the US would mean shifting away from countries like China and India that have the highly specialized workforce and skills needed to produce the millions of iPhones that Apple ships each year. The result could mean price hikes or design changes for the iPhone, some analysts estimate. 'It just fundamentally doesn't work,' said Dipanjan Chatterjee, vice president and principal analyst at market research firm Forrester. Apple did not respond to CNN's request for comment on whether it plans to shift iPhone production to the US. China already has a sprawling system of plants tailored specifically for assembling electronics. Foxconn, Apple's longtime iPhone assembly partner, employs 900,000 people in its peak season, although it's unclear how much of that employment occurs in China and is related to iPhone work. Workers live in dormitories, making it easier to shift production plans with little notice, as Chatterjee points out. Production processes are highly specialized depending on the product; it's not a 'one size fits all' approach that's easy to replicate. 'The expertise to make each of the components is something that has to be worked on for a long period of time,' said David Marcotte, senior vice president at international market research company Kantar. There's also the question of whether there's enough demand for factory jobs in America. Manufacturing has been on the decline in the United States, with only 8% of American workers holding jobs in that sector as of earlier this year compared to roughly 26% in 1970, according to the Bureau of Labor Statistics, And a lot has changed since 1970. Carolyn Lee, executive director of the Manufacturing Institute, previously told CNN that 'the job has very much changed' and that modern manufacturing roles involve skills like coding and data analytics. Apple said in February that it plans to invest $500 billion in growing its US footprint over the next four years, which will go towards boosting its research and development efforts, opening a new facility to manufacture servers to support its Apple Intelligence software features and launching a Detroit academy to teach companies about smart manufacturing techniques and AI. Trump has declared this investment – along with a $100 billion commitment from Taiwan-based chipmaker TSMC to expand in the US – a political win and a step towards onshoring more tech production. But Apple's academy will be for small-to medium-sized businesses, according to Apple's press release, not training workers or building infrastructure to produce iPhones the way it is done in China or India. Cook has acknowledged the gap in labor required to produce iPhones in the US. Speaking at a Fortune Magazine event in 2017, he described the manufacturing environment in China as providing a combination of 'craftsman' skills, 'sophisticated robotics' and 'the computer science world.' 'That intersection, which is very rare to find anywhere, that kind of skill, which is very important for our business because of the precision and quality level that we like,' he said. Mohit Kumar, CEO and founder of smart ring maker Ultrahuman, has firsthand experience shifting production of a tech product to the US from India. Ultrahuman began producing its finger-worn health tracker in Texas in November after partnering with electronics manufacturer SVtronics. The smart ring company automated more tasks to avoid higher labor costs in the United States and hired workers that were trained in multiple steps of the process – such as casting and polishing rings – rather than just one of those steps, he told CNN. The topic came up in April, with US Commerce Secretary Howard Lutnick telling CNBC that Cook said Apple needs 'robotic arms' to build iPhones in the United States at the same scale and precision as its facilities abroad. Patrick Moorhead, founder and CEO of analysis firm Moor Insights & Strategy, thinks Apple could feasibly shift some iPhone production to the US in five years. But that would involve automating some processes to account for the skill gap in America compared to China and India, he says. That could also involve changing the iPhone's design to accommodate more automation, such as changing how certain components are glued together. Many of Apple's suppliers are based in China, so transitioning to the US even just for assembly would mean shifting further away from critical components. Dan Ives, global head of technology research for Wedbush Securities, told CNN last month via email that an estimated 90% of the iPhone's production process takes place in China, although he says that number is closer to 40% now that Apple has shifted more production to India. He has also estimated that making iPhones in the United States could triple the price of the device. Apple is faced with a tough decision either way, says Forrester's Chatterjee, despite Cook's meeting with Trump last week and the $1 million donation he made to Trump's inauguration, according to Axios. 'Because neither can you realistically, from an economic standpoint, bring production to the US, nor is it really tenable in this climate to say, 'No, I won't do that,'' he said. 'So you've got to walk that fine line, that tightrope, for as long as you can.'
Yahoo
26-05-2025
- Business
- Yahoo
Analyst has blunt words on Trump's iPhone tariff plans
President Donald Trump is doubling down on his plans to bring iPhone production to the U.S., no matter how many experts see it as misguided. The issue has been in full focus since last week, when Trump spoke out against Apple () CEO Tim Cook. The president made it clear that he isn't happy with Cook's decision to build iPhones in India rather than in the U.S. 💵💰💰💵 When Trump addressed Apple, he stated that the company would be increasing production in the U.S. Now, he has announced plans to levy a 25% tariff against Apple for any iPhones not manufactured in the U.S. Since before he returned to office, Trump has been highly focused on getting tech companies, including Apple, to start building more products on U.S. soil. This has garnered significant criticism from experts, who see this as highly unlikely. For months, Trump's tariffs against nations such as China, Canada, and Mexico have sparked significant economic uncertainty, pushing down financial markets. For many companies, the tit-for-tat negotiations between Trump and Chinese President Xi Jinping have been particularly troubling as trade relations between the two economic superpowers hang in the Apple's plans to invest more than $500 billion in U.S. manufacturing over the next four years, Trump clearly isn't satisfied, as Apple still plans to shift iPhone production from China to India. He responded with a detailed post on Truth Social, stating that every iPhone sold in the U.S. would have to be built there or Apple would have to pay a 25% tariff on each one. Daniel Ives, a technology analyst for Wedbush Securities, responded to Trump's claims with strong skepticism that Apple would ever manufacture and distribute the iPhone in the U.S. He went so far as to describe it as a 'fairy tale' in a recent note to investors, making clear that he believes it is not provided further context on this topic in an X post, revealing that he believes the cost of iPhones would skyrocket significantly if they were built in the U.S., likely making Apple's flagship product considerably less appealing to consumers. Moving iPhone production to the U.S. "would result in an iPhone price point that is a non-starter," he said in the post. Ives isn't the only tech expert to argue that Trump's vision for Apple building iPhones on U.S. soil is a pipe dream and unlikely to ever materialize. In April 2025, experts from AppleInsider provided a detailed analysis of the many problems Apple would likely face, including component costs and a lack of labor. Jeff Le, a Principal at 100 Mile Strategies, shared with TheStreet his take on what this development is likely to mean, both for Apple and for Trump's agenda. More Tariff News: Apple CEO's business plan provokes US president Fund manager has extremely blunt words on China tariff news Trump delivers another huge tariff surprise 'Apple has recognized its investments and overreliance on China has represented a significant vulnerability to its business and had announced, along with its partner Foxconn, multibillion dollar investments for deeper India manufacturing,' he states. 'However, getting these investments operational immediately is unlikely and does not address the President's urgency in getting more U.S.-made iPhones.' As Trump's nature is often highly unpredictable, it's difficult to assess how he will handle this matter, particularly given the many reasons it is unlikely to happen. Le also notes, though, that 'his call to tariff Apple's iPhone 25 percent or higher is a contrast from his blanket threats, focusing on specific products.'The stock market did not react well to Trump's post about the 25% iPhone tariff, as evidenced by the fact that $100 billion has been erased from Apple's market cap since Trump's post on Friday, May 23. While shares rose slightly in after-hours trading, they remain firmly in the red for the week. For Apple, Trump's focus on making sure that iPhones are built in the U.S. presents a challenge. But as Ives and others have made clear, it appears highly unlikely that it will deliver on what the president wants, even if he moves forward with his tariff has blunt words on Trump's iPhone tariff plans first appeared on TheStreet on May 26, 2025
Times of Oman
23-05-2025
- Business
- Times of Oman
Trump holds out 25% tariff threat to Apple if it makes iPhones in India
New Delhi: US President Donald Trump on Friday again sought to pressurise Apple on its decision to increase production of its iPhone in India. Trump said that Apple will have to pay a 25 per cent import tariffs if its mobile handsets sold in US are not produced in the boundaries of the country. In a social media post on his Truth Social, US President Donald Trump wrote, "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. Thank your for your attention to this matter," he further added in the post. Earlier on May 15, while speaking in Doha, Trump said that he had spoken with the Apple CEO Tim Cook and asked him to limit Apple's expansion in India. Recently, Apple took some steps to expand its iPhone production in India, setting up assembly plants operating in the country. Two of these plants are located in Tamil Nadu, and one is in Karnataka. For these plants Apple has signed contract with manufacturers, such as Foxconn and Tata Group to set up production units. In the last fiscal year, Apple produced USD 22 billion worth of iPhones in India in the 12 months through March 2025, which is a huge 60 per cent jump from the prior year. Apple manufactured approximately 40-45 million iPhones in India in 2024, accounting for 18-20 per cent of its global output. Of this, about 15 million were exported to the US, 13 million to other international markets, and about 12 million were sold in the Indian market. In January 2025, Apple achieved an 11th consecutive quarterly revenue record in India, with iPhone sales estimated at USD 10 billion in 2024. India stands as the Apple's fourth-largest market globally in 2024, after the US, China, and Japan. As reported last month, driven by the escalating trade tensions and high reciprocal tariffs announced by both China and US against each other, in a strategic move Apple decided to transition all production of iPhones destined for the US market to India from China.
Entrepreneur
21-05-2025
- Business
- Entrepreneur
Foxconn Invests USD 1.48 Bn in India to Power Apple's iPhone Production Push
The investment was made through Foxconn's Singapore-based arm into its Tamil Nadu unit, Yuzhan Technology (India) Pvt Ltd. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. Apple's key manufacturing partner, Foxconn, has pumped in USD 1.48 billion (around INR 12,800 crore) into its Indian unit over the last five days, signalling a significant boost to iPhone production in the country. The investment was made through Foxconn's Singapore-based arm into its Tamil Nadu unit, Yuzhan Technology (India) Pvt Ltd. As per regulatory filings, Foxconn Singapore acquired 9,999 shares of Yuzhan at INR 10 each, with a substantial premium, taking the total transaction value to USD 1.489 billion. The move aligns with Apple's broader strategy to shift more iPhone manufacturing to India amid global supply chain realignments and trade tariff uncertainties. Apple CEO Tim Cook recently confirmed that the majority of iPhones sold in the US in the June quarter would be sourced from India, while China would continue to cater to most other markets. Currently, around 15% of Apple's global iPhone production comes from India, according to government sources. Foxconn has more than doubled its India revenue to over USD 20 billion (approximately INR 1.7 lakh crore) in FY25, primarily driven by increased iPhone output. S&P Global's analysis shows US iPhone sales touched 75.9 million units in 2024, while India's iPhone exports reached 3.1 million units in March alone, indicating the need to ramp up capacity or adjust shipment flows. Union Minister Ashwini Vaishnaw recently announced that India's mobile phone exports hit a record INR 2 lakh crore in FY25, with iPhone exports alone accounting for INR 1.5 lakh crore. Apple reportedly aims to manufacture about 60 million iPhones in India this fiscal year. The massive Foxconn investment reinforces India's growing role as a global electronics manufacturing hub and a critical pillar in Apple's production strategy.
