President Donald Trump is unhappy with Apple's plan to source the majority of iPhone sales in the US from factory partners in India rather than China. Apple CEO Tim Cook has confirmed the plan.
President Donald Trump wants Apple to make iPhones for the US market and continue to put pressure on the company and Cook.
I have long informed Apples Tim Cook that I expect iPhones sold in the US to be manufactured and assembled in the US, not in India or anywhere else, President Donald Trump posted on the social network Truth Social.
However, according to analysts, Apple prefers to pay a higher tax rate, rather than moving its iPhone production to the US.
Apple's supply chain analyst Ming-Chi Kuo shared on social network X: "In terms of profit, Apple would be much better off paying a 25% tax on iPhones sold in the US market, rather than moving the iPhone assembly line back to the US."
Experts have long thought that iPhone manufacturing in the US is impossible and the cost is also very expensive.
Analysts say that iPhone made in the US will be much more expensive, CNBC previously reported that the price of an iPhone will range from 1,500 to 3,500 USD if iPhone production activities are moved to the US.
In addition to labor costs and rising prices, moving an iPhone factory to the US also comes with logistical challenges.
The supply chain and factory took many years to build, including equipment installation and human resources recruitment. Parts that Apple imports into the US for assembly may also be subject to tariffs, CNBC analyzed.
Apple started making iPhones in India in 2017, but it has not been able to produce Apple's latest devices until recent years.
According to according to accordingbush analyst Dan Ives, Apple's idea of making the iPhone in the US is an unlikely fairy tale.
Other analysts are cautious about predicting how President Donald Trump's threat will eventually play out. Apple could reach a deal with the government regardless of the eroding relationship or challenge tariffs in court.
Wells Fargo analyst Aaron Rakers highlighted skepticism about the 25% tariffs.
He said that Apple can try to maintain a profit margin of about 41% on the iPhone by raising the price in the US by 100 to 300 USD for each phone.
It is unclear how President Donald Trump intends to target Apple's iPhone made in India. Rakers believes the government could impose specific tariffs on phones imported from India.
Apple's operations in India continue to expand.
Foxconn, an iPhone assembly company for Apple, is building a new $1.5 billion factory in India, where it can produce some new iPhones.
