For US President Donald Trump, there could be few greater victories than having a domestically produced model of the iPhone, one of the vital well-liked tech merchandise in historical past. Such a prize would validate his tariff plan and marketing campaign promise to deliver manufacturing jobs again to America.
And the administration clearly feels that is an achievable aim, particularly within the face of the 145% tariffs that it goals to impose on imports from China, Apple’s present manufacturing hub. The corporate additionally has vowed to speculate $500 billion domestically over the following 4 years.
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This week, the White Home made its stance clear: Trump needs Apple to start constructing the system within the US. “If Apple didn’t suppose america might do it, they in all probability wouldn’t have put up that huge chunk of change,” White Home Press Secretary Karoline Leavitt informed reporters.
However the actuality is much totally different. Apple is unlikely to maneuver iPhone manufacturing to the US within the foreseeable future for a wide range of causes, together with the scarcity of amenities and labour wanted to provide the units. Furthermore, the nation lacks the wealthy ecosystem of suppliers, manufacturing and engineering know-how that — for now — can solely be present in Asia.
The corporate is also extra targeted on turning India into its new supply of US-bound iPhones. Apple’s companions are constructing the world’s second-largest iPhone plant in that nation, reducing the corporate’s reliance on China.
Apple’s greatest FATP amenities — quick for remaining meeting, take a look at and pack-out — are huge and incomprehensible to many individuals exterior of Asia. They’re nearly cities themselves, with a number of hundred thousand folks, colleges, gyms, medical amenities and dormitories. One main iPhone manufacturing facility, a fancy in Zhengzhou, has even been dubbed iPhone Metropolis.
“What metropolis in America goes to place all the pieces down and construct solely iPhones? As a result of there are tens of millions of individuals employed by the Apple provide chain in China,” mentioned Matthew Moore, the co-founder of a startup and a former Apple manufacturing engineer. “Boston is over 500,000 folks. The entire metropolis would want to cease all the pieces and begin assembling iPhones.”
A consultant for Cupertino, California-based Apple declined to remark.
The event of latest iPhones and different merchandise nonetheless begins at Apple’s labs in Silicon Valley. However working with Asia-based part suppliers and different companions begins lengthy earlier than a product truly hits the market. Apple engineers and operations specialists spend months or years working intently with Foxconn Expertise Group, Pegatron Corp and different suppliers to customise meeting of latest units.
Along with its lock on the manufacturing operations, China is dwelling to tens of millions of individuals educated in working equipment and the talents wanted to construct iPhones — a course of that also requires a variety of guide work.
“The engineering assist to run a manufacturing facility just isn’t in America,” Moore mentioned. There simply aren’t sufficient college students finding out STEM, or science, know-how, engineering and math, he mentioned.
Chief government officer Tim Cook dinner laid out the explanations for relying so closely on China throughout a Fortune journal occasion in 2017, saying it wasn’t due to low labour prices.
“China stopped being the low labour-cost nation a few years in the past,” he mentioned. “The reason being due to the talent and the amount of talent in a single location.”
You would fill a number of soccer fields with state-of-the-art tooling engineers in China, Cook dinner mentioned on the time. “Within the US, you would have a gathering of tooling engineers and I’m unsure we might fill the room.”
One well-liked counterpoint is that Apple ought to use its money hoard to purchase hundreds of acres within the US and create a completely robotic and automatic iPhone manufacturing facility. That will take away any human-related challenges from the manufacturing course of.
Commerce Secretary Howard Lutnick mentioned as a lot in an interview with CBS, suggesting that “the military of tens of millions and tens of millions of human beings” goes to be automated.
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However that’s not but sensible, in line with provide chain specialists and individuals who have labored on Apple product manufacturing. China has entry to lower-cost automation and hasn’t been capable of make such a imaginative and prescient work.
The tempo of iPhone growth additionally makes it more durable to automate processes as a result of they will regularly change, they mentioned. A lot of the gear wanted for manufacturing is made in China as effectively.
Whereas the look of the iPhone hasn’t modified meaningfully in years, new supplies and inside parts — and even the smallest of tweaks to the design — require the corporate to retool the meeting strains abroad.
“You design the factor, rebuild the manufacturing facility, and then you definately solely have six months to promote it,” in line with an individual with information of Apple’s provide chain who requested to not be recognized. “The tempo of change makes it a lot more durable to automate.”
Although Apple has certainly diversified manufacturing of iPhones, decreasing the share made in China to beneath 90%, it’s troublesome to duplicate the method in different international locations. Apple manufacturing hubs in Thailand, Vietnam, Malaysia and Indonesia are targeted on units like Macs, AirPods, smartwatches and iPads.
The iPhone’s frequent updates and number of fashions make it more durable to automate manufacturing.
Up to now, the most important try and create an iPhone manufacturing heart exterior of China has been in India. And that’s taken a decade to come back collectively. Although Apple has a small iPhone manufacturing line in Brazil, that operation is targeted on less-advanced fashions.
For now, at the least, the Indian factories will assist Apple keep away from the Chinese language tariffs. Already the corporate has been filling its US channels — its greatest single market — with iPhones made in India, Bloomberg Information beforehand reported. That nation may be sufficient, at the least for now. The estimated 35 million items it’s now making a 12 months might cowl a big portion of its wants within the US.
Apple sells greater than 220 million iPhones a 12 months and presently provides seven fashions, that are all bought in a number of colours and storage capacities. That makes the manufacturing course of much more advanced and the size provided in China much more essential.
Based on Moore, less complicated merchandise with much less frequent modifications — like iMacs and iPads — could possibly be simpler. Already, Apple handles remaining meeting of Mac Professional desktops in Texas. However the elements being pieced collectively are principally made in China anyway. Furthermore, Apple solely sells hundreds of these computer systems yearly and doesn’t replace them for years at a time.
“IPhones are a special animal,” Moore mentioned.
© 2025 Bloomberg
Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.
For US President Donald Trump, there could be few greater victories than having a domestically produced model of the iPhone, one of the vital well-liked tech merchandise in historical past. Such a prize would validate his tariff plan and marketing campaign promise to deliver manufacturing jobs again to America.
And the administration clearly feels that is an achievable aim, particularly within the face of the 145% tariffs that it goals to impose on imports from China, Apple’s present manufacturing hub. The corporate additionally has vowed to speculate $500 billion domestically over the following 4 years.
ADVERTISEMENT
CONTINUE READING BELOW
This week, the White Home made its stance clear: Trump needs Apple to start constructing the system within the US. “If Apple didn’t suppose america might do it, they in all probability wouldn’t have put up that huge chunk of change,” White Home Press Secretary Karoline Leavitt informed reporters.
However the actuality is much totally different. Apple is unlikely to maneuver iPhone manufacturing to the US within the foreseeable future for a wide range of causes, together with the scarcity of amenities and labour wanted to provide the units. Furthermore, the nation lacks the wealthy ecosystem of suppliers, manufacturing and engineering know-how that — for now — can solely be present in Asia.
The corporate is also extra targeted on turning India into its new supply of US-bound iPhones. Apple’s companions are constructing the world’s second-largest iPhone plant in that nation, reducing the corporate’s reliance on China.
Apple’s greatest FATP amenities — quick for remaining meeting, take a look at and pack-out — are huge and incomprehensible to many individuals exterior of Asia. They’re nearly cities themselves, with a number of hundred thousand folks, colleges, gyms, medical amenities and dormitories. One main iPhone manufacturing facility, a fancy in Zhengzhou, has even been dubbed iPhone Metropolis.
“What metropolis in America goes to place all the pieces down and construct solely iPhones? As a result of there are tens of millions of individuals employed by the Apple provide chain in China,” mentioned Matthew Moore, the co-founder of a startup and a former Apple manufacturing engineer. “Boston is over 500,000 folks. The entire metropolis would want to cease all the pieces and begin assembling iPhones.”
A consultant for Cupertino, California-based Apple declined to remark.
The event of latest iPhones and different merchandise nonetheless begins at Apple’s labs in Silicon Valley. However working with Asia-based part suppliers and different companions begins lengthy earlier than a product truly hits the market. Apple engineers and operations specialists spend months or years working intently with Foxconn Expertise Group, Pegatron Corp and different suppliers to customise meeting of latest units.
Along with its lock on the manufacturing operations, China is dwelling to tens of millions of individuals educated in working equipment and the talents wanted to construct iPhones — a course of that also requires a variety of guide work.
“The engineering assist to run a manufacturing facility just isn’t in America,” Moore mentioned. There simply aren’t sufficient college students finding out STEM, or science, know-how, engineering and math, he mentioned.
Chief government officer Tim Cook dinner laid out the explanations for relying so closely on China throughout a Fortune journal occasion in 2017, saying it wasn’t due to low labour prices.
“China stopped being the low labour-cost nation a few years in the past,” he mentioned. “The reason being due to the talent and the amount of talent in a single location.”
You would fill a number of soccer fields with state-of-the-art tooling engineers in China, Cook dinner mentioned on the time. “Within the US, you would have a gathering of tooling engineers and I’m unsure we might fill the room.”
One well-liked counterpoint is that Apple ought to use its money hoard to purchase hundreds of acres within the US and create a completely robotic and automatic iPhone manufacturing facility. That will take away any human-related challenges from the manufacturing course of.
Commerce Secretary Howard Lutnick mentioned as a lot in an interview with CBS, suggesting that “the military of tens of millions and tens of millions of human beings” goes to be automated.
ADVERTISEMENT:
CONTINUE READING BELOW
However that’s not but sensible, in line with provide chain specialists and individuals who have labored on Apple product manufacturing. China has entry to lower-cost automation and hasn’t been capable of make such a imaginative and prescient work.
The tempo of iPhone growth additionally makes it more durable to automate processes as a result of they will regularly change, they mentioned. A lot of the gear wanted for manufacturing is made in China as effectively.
Whereas the look of the iPhone hasn’t modified meaningfully in years, new supplies and inside parts — and even the smallest of tweaks to the design — require the corporate to retool the meeting strains abroad.
“You design the factor, rebuild the manufacturing facility, and then you definately solely have six months to promote it,” in line with an individual with information of Apple’s provide chain who requested to not be recognized. “The tempo of change makes it a lot more durable to automate.”
Although Apple has certainly diversified manufacturing of iPhones, decreasing the share made in China to beneath 90%, it’s troublesome to duplicate the method in different international locations. Apple manufacturing hubs in Thailand, Vietnam, Malaysia and Indonesia are targeted on units like Macs, AirPods, smartwatches and iPads.
The iPhone’s frequent updates and number of fashions make it more durable to automate manufacturing.
Up to now, the most important try and create an iPhone manufacturing heart exterior of China has been in India. And that’s taken a decade to come back collectively. Although Apple has a small iPhone manufacturing line in Brazil, that operation is targeted on less-advanced fashions.
For now, at the least, the Indian factories will assist Apple keep away from the Chinese language tariffs. Already the corporate has been filling its US channels — its greatest single market — with iPhones made in India, Bloomberg Information beforehand reported. That nation may be sufficient, at the least for now. The estimated 35 million items it’s now making a 12 months might cowl a big portion of its wants within the US.
Apple sells greater than 220 million iPhones a 12 months and presently provides seven fashions, that are all bought in a number of colours and storage capacities. That makes the manufacturing course of much more advanced and the size provided in China much more essential.
Based on Moore, less complicated merchandise with much less frequent modifications — like iMacs and iPads — could possibly be simpler. Already, Apple handles remaining meeting of Mac Professional desktops in Texas. However the elements being pieced collectively are principally made in China anyway. Furthermore, Apple solely sells hundreds of these computer systems yearly and doesn’t replace them for years at a time.
“IPhones are a special animal,” Moore mentioned.
© 2025 Bloomberg
Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.
