Trump’s threat may be insufficient to move production

A once firmly The relationship between the president Donald Trump and Apple CEO Tim Cook collapses about the US idea iPhone.

Last week Trump said Tariff on iPhones In a message on social media.

Trump is upset by Apple’s plan for most iPhones sold in the US from its factory partners in India, not in China. Cook confirmed this plan earlier this month During the earnings Discussions.

Trump wants Apple to create iPhones for the US market and continued to press on the company and cook.

“I have long informed Tim Cook from Apple that I expect their iPhone to be sold in the United States, will be manufactured and built in the US, not in India or elsewhere,” Trump said on Truth Social on Friday.

Analysts note that there will probably be more sense for Apple to eat costs rather than move production.

“In terms of profitability, for Apple much better to take a shot 25% tariffs on iPhones sold on the US market than to move the iPhone back to us,” – Apple’s chain analyst Min-chu kuo wrote on X.

UBS analyst David Fogt said the potential 25% of the tariffs were “title”, but that they would be “modest wind” to Apple’s profit, reducing the annual profit by 51 cents per share, compared to the previous expectation of 34 cents per share at the current tariff landscape.

Experts have long believed that at best, the iPhone made by the United States is impossible at best.

Analysts said the iPhone made in the US will be much more expensive CNBC previously reportedWith some estimates from 1500 to $ 3,500 to buy one in retail. Work costs are definitely rising.

But it will also be logistically difficult.

Supply networks and factories require years to create, including equipment installation and staffing. The spare parts brought to the US for assembly can also be tariffs.

Apple started producing iPhones in India in 2017, but only in recent years the region is able to create the latest Apple devices.

“We believe that Apple’s concept produced iPhones in the United States is a fairy tale that is impossible,” Wedbush Dan Jeous wrote on Friday.

Other analysts were cautious about the prediction of how Trump’s threat is eventually played out. Apple may be able to make a deal with the administration – despite the blurry relationship – or dispute tariffs in court.

So far most important Apple products are released from tariffs after Trump has given phones and computers Tariff of refusal – Even from China – in April, but Apple does not know how the tariffs for Trump administration end up playing In June.

“We are skeptical” that 25% of the tariff will be materialized, Wells Fargo Aaron Rakers wrote.

He wrote that Apple could try to retain approximately 41% gross profitability on iPhones, raising US $ 100 to $ 300 prices.

It is unclear how Trump intends to focus on Apple’s iPhones on India. Rakers wrote that the administration could supply certain tariffs for the import of phone from India.

Apple operations in India continue to expand.

FOXCONN, which collects iPhones for Apple, creates a new plant in India by $ 1.5 billion that can make some iPhone production, Financial Times report Thursday.

Apple refused to comment on Trump’s message.