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During the formal announcement, President Trump stated that Apple has not made such a significant investment anywhere else, indicating this move aims to address questions regarding iPhone manufacturing within the U.S. The substantial investment from Apple is expected to create thousands of jobs in the U.S., though it does not change the fact that iPhones will continue to be assembled overseas.
President Trump expressed his desire for Apple to establish its supply chain locally but acknowledged the reality he cannot ignore. During a press briefing, when asked about final assembly within the country, Trump responded: “He makes many of the components here, and we’ve been talking about it, and the whole thing is set up at other places, and it’s been there for a long time, so in terms of cost and all. But I think we may incentivize him enough that one day he’ll be bringing that — but he brings most of the stuff.”
Even though Apple has tried to reduce its dependency on China by moving some iPhone assembly to India, the company still relies on a decades-old supply chain for any iPhone. A veteran reporter noted that the raw materials comprising over 1,000 components in each device continue to originate from China.
According to Bloomberg’s Mark Gurman, there is no scenario where Apple would shift iPhone production to the U.S., given approximately 2,700 components in a single iPhone. Analyst Ming-Chi Kuo has stated that it would be wise for Apple to absorb tariffs on imported devices to maintain profitability if Trump continues to impose them.
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In summary, despite attempts by both parties, iPhone manufacturing in the U.S. remains unlikely due to the extensive supply chain and reliance on Chinese components.
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What was President Trump's stance on Apple establishing its supply chain locally during the press briefing?
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