As it well known, on the back of every iPhone tells us it is “designed by Apple in California. Assembled in China”. However, Donald Trump is now looking forward to assembling iPhones in the USA too.
According to Wednesday’s New York Times, Trump said he tells Tim Cook to build iPhones in the United States.
I got a call from Tim Cook at Apple, and I said, “Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.”
In the same news, according to Trump, Tim Cook replied “I think we’ll create the incentives for you, and I think you’re going to do it. We’re going for a very large tax cut for corporations, which you’ll be happy about”.
Due to the cheap labor force, China quickly became the world’s largest manufacturing power. Besides, Apple really needs enough low-cost skilled workers to support them to sells 395 iPhones every minute.
On the other hand, Trump dangled the carrot of tax breaks. When it comes to tax breaks, it should brings enough manufacturers to support Apple. In fact, Apple is also looking into what the move would cost. Reportedly, Trump was planning to untroduce a 45% tax on products imported from China. If any of these changes come to pass, it could totally chnage the retail price at the same time.