Will Apple Finally Move Its Production To The US After Trump's Offer?

By Precious Gem de Peralta
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Apple CEO Tim Cook called President-elect Donald Trump after he won. Trump recently revealed to The New York Times that is wants Apple to move its production to the US. He offers the company incentives like tax cuts. Contando Estrelas via Flickr

President-elect Donald Trump did not have much support from the tech industry. This is the case with Apple and among other tech companies. However, Apple's CEO Tim Cook called Trump after his win. It was later revealed to The New York Times that Trump offered incentives to Apple in an attempt to convince the company of moving its production to the US. The question is whether or not Apple will even consider doing that.

Trump is trying to woe Cook and Apple to make their devices in the US. Part of his offer is "very large tax cut for corporations, which you'll be happy about". He was also opened to Cook that if he could convince Apple, it will be a "real achievement". According to The New York Times, Cook reportedly acknowledged Trump's suggestion of moving their production to the US instead of other countries. Apparently, Trump is optimistic that the company will indeed do it. According to the Tech Times, Trump wants at least one plant in the US. That's compared to Apple's manufacturing partners with operations in China and Vietnam.

The idea of iPhone being made locally in the US in not far from the company's mind. In fact, Nikkei already reported before that Apple has asked Foxconn to conduct a feasibility study on the move of iPhone production to the US. But Foxconn's Chairman Terry Gou pointed out the obvious consequence if it will indeed happen. The problem will be "higher production costs". To put it simply, Apple will spend lesser in producing iPhones in countries like China than in the US. Hence, the price of iPhones that is still manageable for some. The shift in production means that the iPhone will probably cost a lot more than it is now.

Cook also see the other problem as the lack of skilled workers in the US. It's incomparable to that in China where manufacturing is certainly a huge focus. In addition, Apple pays lower wages in China. It should also be noted that Cook supported Trump's opponent, Hillary Clinton. Though he encouraged his employees to "move forward together" after Trump was elected as the next US President.

It might come down to the result of that feasibility study. Apple would likely move its production to the US if the result showed that its possible.

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