To move only 10% of Apple’s production chain from East Asia to the United States, the company will take at least three years and $ 30 billion investment, said a representative of wedbush security.
The cost of the iPhone, if doing so is transferred to the United States, could have reached $ 3,500 – the current basic price, CNN reported with Dan Aves, the leader of technological research on wedbush security.
Previously, Donald Trump called the company to move to the United States, promising zero tariffs and a quick connection to electric networks. But Dan Ives says it’s “rather a fictional story.” He emphasized that only 10% of the Apple production chain from East Asia in the United States will need at least three years and $ 30 billion investment. And even in a scenario, the price of an iPhone can grow to $ 3500, given the need to create a full -fledged infrastructure from the beginning.
Most iPhone details are currently made in China, Taiwan and South Korea, where the manufacture of microchips, displays and other essential ingredients has been established. The final meeting mainly happens in China – from there almost 90% of all iPhones are provided.
Apple has already expressed its desire to invest $ 500 billion in labor capacities in the United States over the next four years. The company also considers the possibility of expanding production in India and Brazil – countries currently being taxed with less strict duties (26% for India and 10% for Brazil). However, as experts note, these markets do not have enough production capacity to completely replace China.
According to Rosenblatt securities, if Apple has moved the full cost of new duties to consumers, the iPhone price can increase by 43%.
We reminded, earlier that it was reported against the back of fears about increasing prices in the United States, the iPhone began to buy a huge one.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.