Kuo: Apple Better Off Taking 25% Tariff Hit Than Move iPhone Production to US

[Dark_Omen]

It’s disgusting to think that a country fighting off an invasion is expected to be making some type of return for support.

Without getting anything from Ukraine, Ukraine is useless.

Their military is too small to be relevant. They offer nothing -- no land, no backing when we need anything.

Ever wonder why Europe won't help them? Because Ukraine provides nothing relevant for the world, except minerals.

Why didn't they give us $400 billion to help our war in Iraq? Because they're useless.

Ever wonder why the US is up to its eyeballs in debt? Helping the useless.

 

[chucker23n1]

Without getting anything from Ukraine, Ukraine is useless.

Supporting another country during a war isn't a transaction.

 

[It’s always something]

Without getting anything from Ukraine, Ukraine is useless.

Their military is too small to be relevant. They offer nothing -- no land, no backing when we need anything.

Ever wonder why Europe won't help them? Because Ukraine provides nothing relevant for the world, except minerals.

Why didn't they give us $400 billion to help our war in Iraq? Because they're useless.

Ever wonder why the US is up to its eyeballs in debt? Helping the useless.

Utilitarianism which reduces people to being “useless” is a ghastly and inhuman philosophy. Aside from its wrongheadedness on that score, your comment here is just wrong.

Ukraine sent troops to fight in the Iraq War – the third largest contingent. Have they earned nothing from us by this?

The US promised to defend Ukraine when they surrendered their nuclear weapons. Should we not keep our promises?

Ukraine is often called the breadbasket of Europe and even the world because of its fertile soil. Does food for other countries mean nothing?

 

[Mainsail]

Utilitarianism which reduces people to being “useless” is a ghastly and inhuman philosophy. Aside from its wrongheadedness on that score, your comment here is just wrong.

Ukraine sent troops to fight in the Iraq War – the third largest contingent. Have they earned nothing from us by this?

The US promised to defend Ukraine when they surrendered their nuclear weapons. Should we not keep our promises?

Ukraine is often called the breadbasket of Europe and even the world because of its fertile soil. Does food for other countries mean nothing?

Agreed. Also, EU has contributed more to Ukraine than the US. So this notion that Europe hasn’t done anything for Ukraine is bogus.

And this business about Biden is ridiculous. Every day Trump says something that is completely demented. I agree Biden shouldn’t have run for a second term but, my goodness, putting Biden under the microscope while turning a blind eye to Trumps dementia is ridiculous. Just watch Trump’s recent interview in the Oval Office……insanity . Doesn’t know he is looking at a photo shopped picture… doesn’t know what the Declaration of Independence is about. My gosh!!!

 

[Kabeyun]

Probably. But this assumes the orange monkey keeps it at 25%.

 

[Someyoungguy]

A president can implement tariffs on foreign countries, but can a president implement a tariff on an American company specifically? Like, can they single out a US company instead of a foreign country or foreign company?

None of this is actually legal. There is no emergency (remember how the so-called emergency driving tariffs was Fentanyl, which has nothing to do with Apple or iPhones), but congressional Republicans are refusing to do their job.

 

[Jetscreamer]

And who will pay for it you might ask? Oh yeah that’s right… the American people.

I hate to correct you sir, but we all know China pays all the tariffs. America’s taxation arms reaches all sovereign states. Americans don’t pay a penny. Thank you President tRUMP.

 

[Jetscreamer]

None of this is actually legal. There is no emergency (remember how the so-called emergency driving tariffs was Fentanyl, which has nothing to do with Apple or iPhones), but congressional Republicans are refusing to do their job.

We can hope he implodes the economy by next year’s midterms. If the Dems take back the House and Senate, we can end this madness. And a veto-proof majority would be icing on the cake.

 

[Jetscreamer]

His followers don't understand it, so whether The President does or doesn't isn't of much value. "Made in America" is just a blanket term of importance (like 'Make America Great Again' and 'Make America Healthy Again' and 'Big Beautiful Bill', etc.) for that voter base.

MAGA minds would melt if you try explaining how real world business functions. These are folks who communicate in emojis.

 

[Jetscreamer]

Tariffs would be on how much Apple is paying for them, so the production costs in your parlance.


They'd still have to pay the tariffs on the parts that they imported.

tRUMP and his MAGAts have no idea most of the components and material needed to make it does not exist here.

 

[H2SO4]

Trump just wants to get richer on the tariffs... he is counting on Apple to rather take the tariff hit...he prefers them to NOT take any action, because he then makes money on it and apple prices stay low... inland us production is just a pretense

Trump and a significant proportion of his administration are corrupt and always will be.
the VAST majority of his supporters either;

• Like corruption.
• Think corruption is fine given what they are getting/giving up.
• Are woefully and/or deliberately ignorant of the corruption.

Here is some for them to digest;

 

[jfreedle2]

It would be more financially viable for Apple to absorb a 25% import tariff on iPhones sold in the United States than to relocate its assembly operations to the U.S., Apple analyst Ming-Chi Kuo today said.

Kuo, a respected analyst with a long track record of accurate forecasts about Apple's supply chain, made the statement on X (formerly Twitter) in response to renewed pressure from former President Donald Trump for Apple to shift iPhone production to the United States. The comment follows President Trump's threat to impose a 25% tariff on all iPhones not assembled domestically.



The analysis alludes to the scale and complexity of Apple's current manufacturing infrastructure, which is deeply rooted in Asia — particularly China and, increasingly, India. Apple relies on an extensive network of suppliers and contract manufacturers such as Foxconn and Pegatron, all of which operate large-scale facilities tailored specifically to Apple's production requirements. These partnerships are supported by decades of logistical refinement and allow Apple to produce iPhones at a volume and cost efficiency that would be difficult, if not impossible, to replicate in the United States under current conditions.

The U.S. plays a relatively limited role in the physical assembly of iPhones, despite being one of Apple's most critical markets. While some components, such as glass from Corning, are American in origin, final iPhone assembly occurs almost entirely overseas. Moving this process stateside would require multibillion-dollar investments in infrastructure, labor, and training, with no guarantee of replicating the scale, cost structure, or speed of existing operations in Asia.

Apple reportedly plans to shift a majority of iPhone production for the U.S. market to India by 2026. According to Bloomberg, Apple intends to source more than 60 million iPhones annually from Indian factories over the next two years. Foxconn, Apple's primary assembly partner, is currently investing $1.5 billion in new manufacturing infrastructure in India. President Trump posted on Truth Social earlier today:

Such a tariff would be unprecedented in scope and could lead to a significant increase in retail prices for iPhones sold in the United States. Wedbush Securities recently estimated that shifting iPhone production to the United States could increase the per-unit cost of an iPhone to approximately $3,500.

With the U.S. iPhone user base estimated at over 120 million and annual U.S. iPhone shipments exceeding 60 million units, even a 25% tariff would represent a smaller financial burden than the capital expenditures and operational challenges required to replicate its Asian supply chain in America. Apple's shares fell 3% in pre-market trading following the President's comments.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Kuo: Apple Better Off Taking 25% Tariff Hit Than Move iPhone Production to US

That very well maybe as some places are increasingly wanting to raise the minimum wage to $30/hour in the United States. Of course the homeless population could be a readily available workforce once they are trained. I am sure they would love the opportunity to earn a living and get out of their homeless situation.

 

[BornAgainMac]

Agreed. Also, EU has contributed more to Ukraine than the US. So this notion that Europe hasn’t done anything for Ukraine is bogus.

And this business about Biden is ridiculous. Every day Trump says something that is completely demented. I agree Biden shouldn’t have run for a second term but, my goodness, putting Biden under the microscope while turning a blind eye to Trumps dementia is ridiculous. Just watch Trump’s recent interview in the Oval Office……insanity . Doesn’t know he is looking at a photo shopped picture… doesn’t know what the Declaration of Independence is about. My gosh!!!

I also want to add to Trump's dementia with another observation. He claims mental asylums from other countries are dumping their patients into the U.S. But I think he is confused when people ask for asylum. He assumed asylum is the crazy people facilities. It is strange that nobody in the cabinet is clarifying this to Trump or his base is not picking up on this mistake.

 

[Jetscreamer]

Trump and a significant proportion of his administration are corrupt and always will be.
the VAST majority of his supporters either;

• Like corruption.
• Think corruption is fine given what they are getting/giving up.
• Are woefully and/or deliberately ignorant of the corruption.

Here is some for them to digest;

They love tRUMP because he is a mirror reflection of themselves. He says and do everything they wish they can do at their job. For that reason alone, they will keep voting for him, screw the constitution.

 

[chucker23n1]

It is strange that nobody in the cabinet is clarifying this to Trump

Fear of retribution. Trump isn't surrounding himself with experts, but with yes men.

 

[cjsuk]

Fear of retribution. Trump isn't surrounding himself with experts, but with yes men.

I remember when we had that in the UK.

"we're tired of experts" was the line used.

As an actual expert at something, at that point I knew the population could not be trusted with an opinion.

 

[H2SO4]

They love tRUMP because he is a mirror reflection of themselves. He says and do everything they wish they can do at their job. For that reason alone, they will keep voting for him, screw the constitution.

The trouble is, in the long run even they will suffer.

 

[PaladinGuy]

Yes I have. Many . It can suck, but what gives us the divine right to think it’s just for other people. The whole world can’t work in marketing, sales or finance !

It’s economics. Economic development changes economies. I’m not sure any economy has ever gone backwards. If you think China and India want to remain in their stage of economic development, I think you’d be wrong.

 

[It’s always something]

These tariffs will affect any future US-based iPhone production too, right from the very start of factory construction through to the end product.

 

[baconcat_8964]

Do you really think anyone in Europe says, “I wish my next car were an American car”?
Or Japanese say “I really want a Cadillac or Ford, but darn those barriers!”
Or Chinese say, “I really want a Tesla instead of a BYD, Xpeng, or Xiaomi.”

Ask the fundamental questions first.

In China, consumers were buying iPhones at record rates even when there was a 16% VAT on imported goods. Today, you couldn’t find anyone wanting to buy even with a $350 discount and 13% VAT because of competition.

Price of an iPhone in China has no import taxes, since they are manufactured in Bonded Area, and US is still on the MFN list. VAT in China is 13%.