Made-in-America iPhone not happening anytime soon & Trump seems okay with that

AppleInsider

A made-in-America iPhone seems to no longer be a priority for President Trump after Apple's additional $100 billion investment in the United States and local component use.

iPhone won't be assembled in the US anytime soon, if ever

Nothing really changed with Apple's latest $100 billion investment announcement. The iPhone is still assembled overseas, and something like 95% of parts are sourced from outside the United States.

However, the announcement and commemorative plaque seem to strike enough investment in the United States to appease President Trump in the short term. During the press briefing, Apple CEO Tim Cook was asked about final assembly in the United States, in which President Trump interjected, dismissing the question.

"He makes many of the components here, and we've been talking about it, and the whole thing is set up at other places, and it's been there for a long time, so in terms of cost and all," Trump said on Apple's difficulties bringing final assembly to the United States. "But I think we may incentivize him enough that one day he'll be bringing that -- but he brings most of the stuff -- look, he's not making this kind of an investment anywhere else in the world, not even close."

"Apple's coming back to America," Trump concludes.

The statement was made as Cook tried to explain that its investment will bring thousands of jobs and more American hardware to iPhones sold around the globe. Trump's statement reflects that while he'd like to see iPhones built in America, Apple's efforts in the short term are enough for now.

The Trump playbook

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

Apple and Cook are playing the long game with the Trump administration. The plaque and additional $100 billion investment is just another part of Cook's many attempts to keep Apple in good favor.

Apple and Cook will still exist well after the Trump administration ends, so if it is going to do so without taking on excessive and unnecessary costs, it has to play along with the administration's minimum expectations. Perhaps all of this will lead to iPhone 17 launching with minimal, if any, price changes in September.



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jonyarhendts

Ok for now, till next time…

tundraboy

Anyone who knows a little about high tech manufacturing understands that the final assembly stage, which everyone focuses on, is just too labor intensive to be brought to the US.  That's just not going to happen; our wages are just too high, for one thing. 

edited August 6

wood1208

Due to added significant cost, made in America iPhone is a pipe dream. Ain’t going to happen.

charlesn

AppleInsider said:

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

But what's going on with the 50% India tariffs at the exact moment when Apple will be importing its America-bound iPhone 17 stock from India for the Sept launch? I expected to hear some kind of exemption or big reduction for Apple with today's announcement, but I don't believe anything was said. 

edited August 7

wood1208

charlesn said:

AppleInsider said:

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

But what's going on with the 50% India tariffs at the exact moment when Apple will be importing its America-bound iPhone 17 stock from India for the Sept launch? I expected to hear some kind of exemption or big reduction for Apple with today's announcement, but I don't believe anything was said. 

iPhones from India or anywhere will be exempted. Mr Trump knows where to draw line so Americans at large do not get fed up with higher prices on imported iPhones, computers, etc while trying to make the America great!

mike wuerthele

wood1208 said:

charlesn said:

AppleInsider said:

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

But what's going on with the 50% India tariffs at the exact moment when Apple will be importing its America-bound iPhone 17 stock from India for the Sept launch? I expected to hear some kind of exemption or big reduction for Apple with today's announcement, but I don't believe anything was said. 

iPhones from India or anywhere will be exempted. Mr Trump knows where to draw line so Americans at large do not get fed up with higher prices on imported iPhones, computers, etc while trying to make the America great!

They aren't yet, and Apple is paying already. Apple has already paid $800 million in tariffs enacted by the president, and is expecting another $1.1 billion in this quarter, not even the holiday one.

If he knows where to draw the line, and that's debatable, he hasn't drawn it yet.

elijahg

Mike Wuerthele said:

wood1208 said:

charlesn said:

AppleInsider said:

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

But what's going on with the 50% India tariffs at the exact moment when Apple will be importing its America-bound iPhone 17 stock from India for the Sept launch? I expected to hear some kind of exemption or big reduction for Apple with today's announcement, but I don't believe anything was said. 

iPhones from India or anywhere will be exempted. Mr Trump knows where to draw line so Americans at large do not get fed up with higher prices on imported iPhones, computers, etc while trying to make the America great!

They aren't yet, and Apple is paying already. Apple has already paid $800 million in tariffs enacted by the president, and is expecting another $1.1 billion in this quarter, not even the holiday one.

If he knows where to draw the line, and that's debatable, he hasn't drawn it yet.

He has in fact moved the goal posts, since he encouraged movement out of China and then when Apple started importing from India rather than manufacturing in the US, he increased tariffs on Indian imports. 

That however was really a response to India buying Russian oil. Unfortunately most Asian countries aren’t really on Ukraine’s side in this war, more concerned about getting cheap oil, and so Apple had few to choose from even if their crystal ball predicted increased tariffs due to non-compliance with international sanctions against Russia. 

charlesn

Mike Wuerthele said:

wood1208 said:

charlesn said:

AppleInsider said:

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

But what's going on with the 50% India tariffs at the exact moment when Apple will be importing its America-bound iPhone 17 stock from India for the Sept launch? I expected to hear some kind of exemption or big reduction for Apple with today's announcement, but I don't believe anything was said. 

iPhones from India or anywhere will be exempted. Mr Trump knows where to draw line so Americans at large do not get fed up with higher prices on imported iPhones, computers, etc while trying to make the America great!

They aren't yet, and Apple is paying already. Apple has already paid $800 million in tariffs enacted by the president, and is expecting another $1.1 billion in this quarter, not even the holiday one.

If he knows where to draw the line, and that's debatable, he hasn't drawn it yet.

So Mike, to the best of your knowledge, Apple is getting hit with the 50% punitive tariffs on India, up from the original 25%, which was already insane? I haven't read a thing to suggest otherwise. All I've read after yesterday's dog and pony show is that Apple would be exempt from the new 100% tariffs on semiconductors. 

edited August 7

mike wuerthele

charlesn said:

Mike Wuerthele said:

wood1208 said:

charlesn said:

AppleInsider said:

The dismissal of building iPhones in the US was shared shortly after President Trump revealed that companies already investing in the United States would be exempt from new 100% semiconductor tariffs. While it remains to be seen how Apple would have been affected by these new tariffs, they will now incur no cost.

But what's going on with the 50% India tariffs at the exact moment when Apple will be importing its America-bound iPhone 17 stock from India for the Sept launch? I expected to hear some kind of exemption or big reduction for Apple with today's announcement, but I don't believe anything was said. 

iPhones from India or anywhere will be exempted. Mr Trump knows where to draw line so Americans at large do not get fed up with higher prices on imported iPhones, computers, etc while trying to make the America great!

They aren't yet, and Apple is paying already. Apple has already paid $800 million in tariffs enacted by the president, and is expecting another $1.1 billion in this quarter, not even the holiday one.

If he knows where to draw the line, and that's debatable, he hasn't drawn it yet.

So Mike, to the best of your knowledge, Apple is getting hit with the 50% punitive tariffs on India, up from the original 25%, which was already insane? I haven't read a thing to suggest otherwise. All I've read after yesterday's dog and pony show is that Apple would be exempt from the new 100% tariffs on semiconductors. 

Apple and TSMC appear exempt from the semiconductor import tariff, yes. What that is not covering, is finished goods like an iPhone. So, say, should Apple import a barrel full of cellular modem chips to the US for assembly, no 100% tariff. 

As of right now, as of the tariffs that started today, the iPhone is not exempted from the initial 25% tariffs, despite some unnamed White House source saying it is. The second, puniitive for India oil, 25% tariffs kick in, in about a week. We'll see what's updated then.

edited August 7

applezulu

Let's not forget that Trump also got owned by his own bumbling sons with their recent introduction of a Made In America Trump phone. There is an enormous capacity for cognitive dissonance within the MAGA crowd, but Don Jr. and Eric made it really hard for their father to continue demanding that Apple immediately start making iPhones in the US. 

One can imagine all that came into play during private conversations before this announcement, where Cook tried to keep from throwing up a little as he massaged Trump's ego by referring to him as a "fellow smartphone maker," who also knows the struggle of trying to do that kind of manufacturing in the US. Trump's brain no doubt flooded with endorphins as he soaked in enough of Cook's description of their "shared challenges" to regurgitate that word salad made of some of the same ingredients. 

One can also imagine that Cook wanted a strong drink and a long shower with a a steel-wool loofah after the visit, but he probably saved his company a lot of money, at least for a while. 

davidlewis54

As to the headline: until he isnt.

wesley_hilliard

davidlewis54 said:

As to the headline: until he isnt.

Yep!