Apple has now heard what has been feared since the election results were out. President-elect Trump promised on the campaign trail that he would make sure that Apple makes its products in the USA and not China. Now he has told CEO Tim Cook the same thing directly.
Trump promises incentives
He told The New York Times what he said to Cook:
“I got a call from Tim Cook at Apple, and I said, ‘Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.”
Cook reportedly responded to Trump with a brief and non-committal comment saying that he “understands.” Trump said the government could create the incentives for them, and they are planning a very large tax cut for companies which “you’ll be happy about.”
Apple shifting manufacturing to the U.S. is impractical
The idea of Apple doing all or most of its manufacturing in the U.S. is impractical, according to the company’s suppliers. The reason they cited is a lack of the required vocational skills. Also they claim that it won’t create new jobs in the U.S., according to 9to5 Mac.
According to the suppliers, U.S. electronics companies often outsource production. So they don’t always have full control over where their goods are made. And if the manufacturing jobs involving human labor in China are moved to the U.S., it would lead to a loss of those jobs to machines, Apple’s suppliers say, citing economists.
Trump vs. Apple
During the elections, Cook offered his full support to Hillary Clinton and even hosted a fundraiser for her. The entire Apple staff received a memo from Cook after the election. In the memo, Cook stressed the importance of diversity and inclusion inside Apple.
Also Trump called for a boycott of Apple products earlier this year after the iPhone maker turned down the FBI’s request to decrypt an iPhone used by one of the San Bernardino shooters. It seems as if iPhone encryption will continue to be a major area of contention between the two parties and more so under Trump’s presidency, says BGR.
Trump’s full interview with the Times is available at this link. A great conversation between Microsoft co-founder Bill Gates and the President-elect also took place over the phone.