Email Service Notes (Nick)

Your Original Email

President Donald Trump said this week that he won’t rule out an additional round of tariffs on Chinese exports that would include iPhones and other Apple’s signature products. Such a move would affect US consumers, no matter as individuals or companies, because the taxes would be levied on the goods when they enter the country. Consequently, Apple may decide to raise the prices of its products to compensate. Or it may also consider building and producing its products in US – that’s also what Trump wants. But this is way more complex than his idea. Moving a complex, global supply chain from Asia is extremely difficult and highly unlikely.

As we all know that Apple buys components from companies all over the world before shipping them to China, where most iPhones are assembled by Taiwanese manufacturer Foxconn. Taking the labor and facility cost in US into consideration, in the event that Apple manufactures and assembles the products in US, it will seriously jack up the iPhone’s cost. According to the analyst, the total cost of moving iPhone production to US would be even more expensive than to absorb the tariffs Trump is threatening.

Your Edited Email

President Donald Trump said this week that he won’t rule out an additional round of tariffs on Chinese exports that would include iPhones and other Apple’s other signature products. Such a move would affect US consumers, no matter both as individuals or and companies, because the taxes would be levied on the goods when they enter the country. Consequently, Apple may decide to raise the prices of its products to compensate. Or Alternatively, it may also consider building and producing its products in US – in fact, that’s also what Trump wants. But this is way too more complex for us to expect than his idea. Moving a complex, global supply chain from Asia is extremely difficult and highly unlikely.

As we all know, that Apple buys components from companies all over the world before shipping them to China, where most iPhones are assembled by Taiwanese manufacturer Foxconn. Taking the labor and facility cost in the US into consideration, in the event that Apple manufactures and assembles the products in US, it will would seriously jack up the iPhone’s cost. According to the analysts, the total cost of moving iPhone production to the US would be even more expensive than to absorb the tariffs Trump is threatening.