Why Trump’s vision of US-made iPhones is likely to remain a dream
America lacks skilled workforce, established supply chains and engineering know-how that – for now – can only be found in Asia
For US President Donald Trump, there would be few bigger victories than having a domestically produced version of the iPhone, one of the most popular tech products in history. Such a prize would validate his tariff plan and campaign promise to bring manufacturing jobs back to America.
And the administration clearly feels this is an achievable goal, especially in the face of more than 125 per cent tariffs that it aims to impose on imports from China, Apple Inc.’s current manufacturing hub. The company also has vowed to invest US$500 billion domestically over the next four years.
This week, the White House made its stance clear: Trump wants Apple to begin building the device in the US. “If Apple didn’t think the United States could do it, they probably wouldn’t have put up that big chunk of change,” White House Press Secretary Karoline Leavitt told reporters.
But the reality is far different. Apple is unlikely to move iPhone production to the US in the foreseeable future for a variety of reasons, including the shortage of facilities and labour needed to produce the devices. Moreover, the country lacks the rich ecosystem of suppliers, manufacturing and engineering know-how that – for now – can only be found in Asia.
The company also is more focused on turning India into its new source of US-bound iPhones. Apple’s partners are building the world’s second-largest iPhone plant in that country, decreasing the company’s reliance on China.