Trump promised to cut taxes if Apple manufactured iPhones in the US.

November 24, 2016 14:21

(Baonghean.vn) - Throughout his election campaign, Donald Trump consistently expressed his intention for Apple to manufacture iPhones and other products in the United States, instead of China as is currently the case.

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Trump promised Apple CEO Tim Cook a tax cut if iPhones were manufactured in the US.

After being elected President, Trump had a direct phone conversation with Apple CEO Tim Cook about this issue.

In an interview with the New York Times, Donald Trump said: “I got a call from Tim Cook at Apple, and I said, ‘Tim, you know one of my biggest wishes is to see Apple build one or more large manufacturing plants in America, not in China, or soon Vietnam, or any other country. You could manufacture your products right here.’”

Apple CEO Tim Cook simply responded, "I understand," without promising to comply with Trump's wishes. The newly elected US President continued to persuade him. Trump said:

"I think we'll have some incentives for you, and I think you'll take advantage of them. We're about to have a major tax cut for corporations, and that's good news for you."

According to suppliers, the idea of ​​Apple manufacturing all or most of its products in the US is unrealistic due to a lack of necessary skills among the workforce, and it would also be unfeasible in terms of creating jobs in the US.

Economists say that American electronics companies typically outsource production overseas, making it impossible to immediately bring manufacturing plants back to the US. There isn't enough labor in the US for these production tasks; moving factories would require transferring most of the work previously done by workers to automated assembly lines.

The issue here isn't cost, because calculations show that if Apple manufactured iPhones in the US, the cost would only be $30-40 more per unit. The big problem is that the US doesn't have as many skilled workers willing to do this job as China.

In this regard, Apple is also facing trouble because of another promise made during Trump's campaign. The Chinese government has warned that iPhone sales will suffer if the new US president carries out his threat to impose a 45% tariff on imports from China.

Le Army

(According to 9to5Mac)

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