Tim Cook, General Director of Apple, left center, escorts President Donald Trump when he visits Apple Mac Pro Manufacturing Plant at Austin, Texas, November 20, 2019.
Tom Brenner Reuters
. Once Solid Relations between the president Donald Trump AND Apple CEO Tim cook spreads into the idea of American iPhone.
Last week, Trump said that “he had a little problem with Tim Cook”, and Friday threatened to hit a 25% Tariff on iPhones In the social media post.
Trump is nervous about the Apple plan to attract most iPhones sold in the USA from their factory partners in India instead of China. Cook confirmed this plan at the beginning of this month during earnings Discussions.
Trump wants Apple to build iPhones on the US market in the US and still presses on the company and cooks.
“I have long informed Tim Cook from Apple that I expect their iPhone, which will be sold in the United States of America, will be produced and built in the United States, and not in India or elsewhere,” Trump on Truth Social published on Friday.
Analysts said that it would probably be more sensible to eat an apple costs than to carry production in the United States.
“When it comes to profitability, it is much better for Apple to take a 25% tariff for iPhones sold on the American market than to transfer the iPhone assembly line back to us”, APLE SUPPLY Chain analyst Ming-chi kuo He wrote on X.
UBS analyst, David Vogt, said that the potential 25% tariffs were a “shocking header”, but they would be a “modest index” for Apple earnings, falling annual earnings by 51 cents per share, compared to the earlier expectation of 34 cents for the action as part of the current tariff landscape.
Experts have long maintained that the iPhone from the USA is in the worst and worst and very expensive.
Analysts said that iPhones produced in the US would be much more expensive, Previously reported CNBCWith some estimates from USD 1500 to 3,500 for the purchase of one in retail trade. Labor costs will definitely increase.
But it would also be logistically complicated.
Building supply chains and factories takes years, including installing equipment and staff. The parts that Apple imported to the United States for the purpose of gathering may also be subject to tariffs.
Apple started the production of iPhones in India in 2017, but only in recent years the region was able to build the latest Apple devices.
“We think that the concept of iPhones producing iPhones in the USA is a fairy tale that is not possible,” wrote the Wedbush Dan Ives analyst in the note on Friday.
Other analysts thought about predicting how Trump's threat eventually took place. Apple may be able to conclude a contract with the administration – despite the erosion of relationships – or challenge the tariffs in court.
For now, most of the most important Apple products are released from tariffs after Trump has given phones and computers Tariff waiver – Even from China – in April, but Apple does not know how Trump's administration tariffs ultimately play beyond June.
“We are skeptical” that 25% tariff materializes, wrote the Wells analyst Fargo Aaron Rakers.
He wrote that Apple can try to keep around 41% gross margin on iPhones, raising prices in the US by 100 to 300 USD per phone.
It is not clear how Trump intends to target Indian iPhones. Rakers wrote that the administration can place specific tariffs for the import of a phone from India.
Apple operations in India are still developing.
Foxconn, which folds iPhones for Apple, is building a new factory of $ 1.5 billion in India, which can make iPhone production, Financial Times Reported Thursday.
Apple refused to comment on Trump's post.