President Donald Trump recently expressed his concerns regarding Apple Inc.’s manufacturing strategy, specifically its plans to build products in India. While advocating for improved trade relations between the United States and India, Trump revealed details from a talk he had with Apple CEO Tim Cook. He strongly suggested that he’d like to see Apple focus most of its production activities in the United States.
Trump’s comments were made at the meeting held on March 6, 2019 at the White House. He indicated that he told Cook, “I don’t want you building in India,” reflecting his apprehension about Apple’s manufacturing direction. That’s the sort of thing that seemed to have Trump smiling about the $500 billion investment Apple promised earlier this year. He chided the company for planning to expand their operations overseas while making this big of a bet on the American economy.
I got mad at Tim Cook for a minute yesterday. And I said man, you know, my friend, I done everything almost short of a blood transfusion for you raw. You’re coming here with $500 billion, but now I hear you’re building all over India. I don’t want you developing in India,” Trump said. As a candidate, Trump did himself no favors by shying away from addressing this issue with the seriousness it deserves. He touted his past support for Apple, despite the company hosting production facilities in China.
Trump Doubles Down on Criticism
In the forum, Trump doubled down on this perspective. As Mr. McKinney put it, “We did you a lot of favors…We have swallowed all the factories you’ve erected in China for years. To prove his point, he referred to India as “one of the highest tariff nations in the world.” That would imply he believes Apple shouldn’t establish production there.
Trump’s hesitations aside, as of this writing it appears that India has presented an irresistible offer to the U.S. They’re talking about removing tariffs entirely, perhaps. This potential agreement could make India a more appealing option for companies like Apple, which are looking to expand their global manufacturing footprint.
The President’s report comes just as new estimates have begun to surface. On those estimates, it would cost between $1,500 and $3,500 to manufacture an iPhone in the United States, a real concern if looking at price and competitiveness. Trump’s idea that Apple has a bright future in the U.S. He confidently claims that the company will boost its domestic manufacturing capacity.
Author’s Opinion
Despite Trump’s rhetoric, pushing for more manufacturing in the U.S. without considering the economic realities, such as costs and global competitiveness, could hurt both Apple and consumers. As global supply chains evolve, maintaining a flexible strategy is more important than forcing production into a single country.
Featured image credit: Heute
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