“I have informed Tim Cook for a long time, that I hope that the iPhone sold in the United States of America will be manufactured and assembled in the United States, not in India or elsewhere.” With this declaration in Truth Social, Donald Trump has just energized the strategy that Apple has built for years. And here is the big but: If you do not comply, Apple must pay 25% of prices. Without exceptions.
The threat occurs just when Apple has accelerated its plan B: Ask India to make all iPhone production for the American market. In fact, this week, investments of several million dollars had been made by Foxconn (Apple manufacturer) in the Hindu country. A movement that looked like the main game to dodge both problems with the pressures of China and Trump. But not.
Why is India either an excuse
When the price boom started in April, it seemed that Trump was particularly against China. His prices were the highest, and reached an unbearable escalation with taxes 145%. Finally, a temporary trade agreement was concluded which reduced them to more than half until the beginning of the summer. With that, we all breathe quieter. Above all, because summer is the moment when the iPhone 17 is starting to be manufactured.
At the same time, Apple continued to increase its position in India. Something that is not new because it has increased presence in the country for years. However, Trump said a few days ago and said again. For him, the problem is not China. It is to make anywhere who is not in the United States.
Drop in apple bag and, once again, the storm of prices increase
The market reaction was immediate. Apple fell on the stock market. And it is that investors understood the message: O Apple supposes prices (and they earn less), or download their prices (and, therefore, sell less). The result for investors is to loseAnd for us, buyers pay more.
It is true that a 25% rate is not “so” so “compared to the exorbitant figures observed last month. But an iPhone of $ 799 would immediately increase to $ 998. Nearly $ 200 of additional cost. And faced with this, two theories are manipulated:
- Absorption of margins: Apple has already communicated in the financial results that the prices had a cost of $ 900 million in the quarter. Apple can absorb them all, but impacting their accounts and shareholders.
- Distribute costs and increase prices: The rumor on an iPhone 17 price increase arrived days ago. Apple would not blame the prices and do not support these new features or design that you will have. But the reality is that they will increase prices in the world to amortize the cost of prices in the United States. Instead of increasing $ 200, better up from $ 80 or 100 dollars worldwide.
Even if they want, making today for tomorrow in the United States is impossible
Let’s put ourselves in the situation that yes, Apple decides to make the iPhone they sell in the United States there. Costs on American soil would increase, in agreement, we also accept. But logistics and Technology in an iPhone manufacturing plant does not move so easy. In fact, it is a question that the 20th anniversary iPhone will have to be made in China for the technical superiority of the country.
And for years, Tim Cook has warned that they are making in China not for costs, but for the technical and human quality that is there. Faced with this, a third way opens: manufacturing with robots. And it is that the United States Secretary of Commerce has already exposed his vision:
It will not be them (North Americans) who will put screws to equipment, but will have well-paid jobs within the framework of the IA industrial revolution.
Donald Trump and Tim Cook at the Apple manufacturing plant in Austin, Texas
Something dystopian, yes, but recently the president of Foxconn admitted that they worked there and will be a reality. Deadlines? Between five and ten years. Time for which Donald Trump will not be in the presidency (unless the Constitution changes). And what makes it worthy that it is worth changing it all or “supporting the shower” with prices of 25%.
Apple is now in a complicated position. On the one hand, he has millionaire commitments in India which cannot cancel Overnight. On the other hand, it faces the real threat of prices of 25% that would make their products in the world in the world unrealizable.
For years, Tim Cook has played geopolitical failures, moving between China, India, Vietnam and other countries. Now Trump tells him that The only valid movement is to make homeWhatever the cost. What will Apple do now?
Currently, the company has already promised to invest $ 500,000 million in American soil over the next four years. The A16 fleas are already manufactured there. But that doesn't seem enough. What is clear is that Tim Cook will have to deploy his diplomacy arsenal once again To soften Trump's position. But this time, the president seems to have learned from his own mistakes: no exception, no medium -term plans. Or factories in the United States or payments.
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