Despite Apple billions: Trump’s dream of the US iPhone remains an illusion

Apple plans to invest $ 600 billion in his home market in the next four years, 100 billion of them were only announced this week-with a large fanfare, one Golden gift for US President Donald Trump as well as a kind of new brand, the “Apple American Manufacturing Program”. One thing alone did not want to announce Apple CEO Tim Cook: the local production of iPhones so hoped for by the American government.

iPhone with great US content

Cook seems to have succeeded in convincing Trump that this is not an easy task. He was surprisingly withdrawn from media representatives. Instead of threatening Apple again with tariffs for smartphones produced in China and India, there was a lot of praise for Apple – and understanding. The iPhone production was “for a long time in other places”, with the corresponding cost model, says Trump. “But I think we can (Cook) one day give sufficient incentives to bring the iPhone) here.”

Trump praised the component production in the USA. Apple does not invest as much anywhere as here. “Not even nearly.” Apple comes “back to America”. Cook had previously emphasized how important the iPhone components were to be made in the USA: “Many semiconductors, the glass, the face ID module.” The production also takes place for products that are sold in other countries. “The (iPhone) content from the United States is great.”

Final assembly of the iPhones remains in China and India

So it is not to be expected that Apple will bring the iPhone – which has never been produced there so far – back to the USA in the foreseeable future. Instead, the group continues to focus on expanding the production in India, even if there are primarily screwing together components that were delivered from China. According to observers, it could take many years for the supply chain that exist in the People’s Republic on which subcontinent is built up.

Cook had bought a little bit with the billion dollar investment. Because companies that, like Apple, invest a lot in the United States, should receive customs exceptions. For example, chip imports with 100 percent import fees are to be occupied. Apple will not have to pay this. Also In the current conflict between the United States and India around Russian oil should not become a customs victim – at least the current status.