The future of the iPhone is up in the air. The White House announced Friday that electronics would be given an exception from President Donald Trump's massive new 145% tariffs on Chinese-made products. But on Sunday, Trump seemed to renounce that waiver. That puts iPhone maker Apple in limbo.
The tech giant is based in the U.S., but it makes most of its products, including iPhones, in China. Trump believes that Apple and other companies should be "hustling to onshore their manufacturing in the U.S. as soon as possible," said White House spokesman Kush Desai.
"What, besides magic, would it take to make iPhones here?" said The Wall Street Journal. iPhone parts originate in many countries and are assembled in China.
Some of the manufacturing could eventually be moved to America, but the devices would become prohibitively expensive. One estimate puts the cost of a homegrown iPhone at $3,500.
What did the commentators say? An "all-American iPhone is impossible," Ed Hardy said at Cult of Mac. The U.S. doesn't have enough "production capacity or sufficient numbers of workers" willing to take low-paying factory jobs. Nor does it have enough customers "thrilled about paying much higher costs" for U.S.-made products. Even if those obstacles are overcome, an all-American iPhone "can't possibly roll off the production line before 2027."
There would be "few bigger victories" for Trump than moving iPhone production to America, Mark Gurman said at Bloomberg. It would "validate his tariff plan." Apple is decreasing its reliance on China but is doing so by building the "world's second-largest iPhone plant" in India.
Apple's biggest manufacturing complexes in China are "almost towns themselves," with housing, education and medical facilities, said Gurman. "What city in America is going to put everything down and build only iPhones?" said Matthew Moore, a former Apple engineer.
What next? It's still not clear what the immediate future holds. There is "no tariff 'exception'" granted for electronic products, said Trump on Truth Social. American companies "need to make products in the U.S."
Apple was moving to airlift 600 tons of iPhones from India to "beat" the new tariffs, said Reuters. The company has made extraordinary efforts to streamline the India-to-U.S. pipeline. Apple now sells "more than 220 million iPhones" a year, and a fifth of those come from India. |