"Made in USA" is expensive: analysts have estimated that the cost of an iPhone assembled in the US will exceed $3500
When insiders reported that the first foldable iPhone will cost more than $2000, many people thought that this is an incredibly high cost for a smartphone. But it turns out that such a price of the gadgets of the American corporation would still be optimistic, because after the introduction of new duties Trump, even existing iPhone models will significantly increase in price, and the price of new models can reach $3500.
Here's What We Know
Publicly, Donald Trump justifies the introduction of huge duties with the desire to move the production of many goods to the United States. It is obvious to everyone that this is not very realistic in today's world, but Trump is obsessed with his idea and cites Apple as an example, which allegedly agreed to this.
CNN asked Dan Ives, head of technology research at financial services firm Wedbush Securities, about the prospect of full production of the iPhone in the US, and he replied that it is theoretically possible, but as is often the case in such ventures, the customer would suffer. Ives explained that technically Apple could build a supply chain and build factories in the US, but in that case the cost of an iPhone labelled "Made in USA" could exceed $3500.
Apple would have to invest tens of billions of dollars in a complex manufacturing ecosystem if it decides to move production entirely to the US. Analysts estimate that moving just 10 per cent of the supply chain to the US would cost the company $30 billion and take three years.
Apple will not only have to establish production of absolutely all components, but also to find and train a huge number of qualified employees. Moreover, if in China an employee receives $30 for an assembled iPhone, in the United States he will have to pay up to $300.
Source: CNN
