Owing to current trade contradictions between US and China, Trump advised Apple to move its manufacturing plants from China to the US.
Prices for Apple products are expected to grow due to high duties that the US imposed on China this summer. Recently Apple announced that taxes would grow up to 25%. Therefore the president of US, Donald Trump, advised Apple to return equipment to US.
As he said on Twitter, “Apple prices may increase because of the massive Tariffs we may be imposing on China – but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now”.
The other point of view
However, some experts say that moving manufacturing plants to US and avoiding tariffs wouldn’t make the Apple’s prices lower. China is still an attractive place for manufacturers due to cheaper labor force and nearness of the plants producing the necessary components.
After all, moving manufacturing equipment to US would be rather expensive. Besides, the production in the US would be far more expensive than China’s tariffs.
According to Apple’s report, in 2014 the cost of components for one iPhone in China was about $190, meanwhile in the US they would cost around $600. Thus the price of the device would be $2000.