Experts said that US President Donald Trump’s endeavor to manufacture iPhone, produced by Apple, inside the United States, is facing many legal and economic challenges, the least of which is the “small screws” installation in automatic ways, Reuters reported.
On Friday, Trump threatened to impose customs duties of 25% on Apple if it was sold iPhone manufactured abroad inside the United States, as part of his administration seeking to support the labor market.
“It’s okay … but”
Trump told reporters last Friday that the 25% customs duties will also be applied to Samsung and other smart phone makers, and the fees are expected to enter into force at the end of next June.
“It will not be fair” not to apply the fees to all imported smartphones.
“I had an understanding with (Apple CEO) Tim (Cook) that he would not do so. He said he would go to India to build factories. I told him it is okay to go to India but you will not sell here without customs duties.”
US Secretary of Commerce Howard Lootnik told CBS last month that the work of “millions and millions of people who prove very small bolts to make iPhone” will come to the United States and will become automatic, which will provide jobs for skilled workers such as mechanics and electricians.
But he later told CNBC that Cook told him that doing this required technology that is not yet available.
“I said I need robotic arms and to do this on a scale and accuracy that I can bring (industry) here. On the day I see it available, you will come here.”
IPhone high prices
Lawyers and professors in the trade sector said that the fastest way to manage the Trump management to pressure Apple through customs duties is to use the same legal mechanism that imposes fees on a wide segment of imports.
Dan Evez, an analyst in Widbush, said that the transfer of production to the United States may take 10 years, and may lead to the price of one iPhone to $ 3500. The latest version of the iPhone is currently sold in the range of $ 1200.
“We believe that the concept of Apple’s production of iPhone in the United States is a fictional story that is not possible,” Evez added.
Brett House, a professor of economics at Columbia University, said that the imposition of customs duties on iPhone devices will increase the costs of consumers through the complexity of the Apple supply and financing chain.
“Nothing is positive for American consumers,” he added.
Apple sells more than 220 million iPhone phones annually around the world.
Customs duties challenge
Countelboint Research estimates that about 20% of the total iPhone imports to the United States now come from India, while the remaining imports come from China.
Apple said earlier this month that customs duties from China are expected to add about $ 900 million to costs during the fiscal quarter from April to June, and that it will import most of the iPhone devices sold in the United States during this period of India.
Analysts have for months expecting prices to increase by Apple, but they have warned that such a step may cost a market share, especially since competitors such as Samsung are trying to attract consumers with the advantages of artificial intelligence that Apple was slow to present.
(Tagstotranslate) Economy (T) American (T) American (T) USA)